Stamp Duty - help me understand
Discussion
The other half and I are looking at a house <£175k. If we do go ahead we would be buying early Spring-ish.
Due to the value i understand that there would be no Stamp Duty to pay on purchase. When would it fall due? 12 months from purchase or ~September 09? (12 months after this plan was announced).
The house is in Scotland, but AFAIK that doesn't make any difference.
Due to the value i understand that there would be no Stamp Duty to pay on purchase. When would it fall due? 12 months from purchase or ~September 09? (12 months after this plan was announced).
The house is in Scotland, but AFAIK that doesn't make any difference.
THe Direct Gov website doesn't say it is deferred, it says you don't pay any stamp duty on purchase less than £175,000...
http://www.direct.gov.uk/en/Nl1/Newsroom/DG_171429
The Chancellor of the Exchequer has announced that stamp duty land tax will not apply to purchases of residential property costing £175,000 or less.
This new annoucement will apply to transactions with an effective date on or after 3 September 2008 and before 3 September 2009.
http://www.direct.gov.uk/en/Nl1/Newsroom/DG_171429
The Chancellor of the Exchequer has announced that stamp duty land tax will not apply to purchases of residential property costing £175,000 or less.
This new annoucement will apply to transactions with an effective date on or after 3 September 2008 and before 3 September 2009.
Edited by john2443 on Tuesday 17th February 08:42
i was getting two different stories from two different people - both in the sodding trade!
deferred or abolished? nobody could tell me.
It's a new build and the sales agent keeps telling us that if we use their mortgage broker then the developer (name removed!) will pay our Stamp Duty..... I didn't think anything of it originally!!
deferred or abolished? nobody could tell me.
It's a new build and the sales agent keeps telling us that if we use their mortgage broker then the developer (name removed!) will pay our Stamp Duty..... I didn't think anything of it originally!!
Edited by AMCDan on Tuesday 17th February 08:53
could this have anything to do with the fact that the home was initially up for sale for ~£190k?
ie; are they misreporting a sale of £190k? I only ask because they were so keen to sell it at the start that they said that i could pay just £170k for the house, and that would show up as a £20k deposit as they would report a £190k sale. Although she did get very nudge nudge wink wink about the whole thing and said that if the surveyor asked for the purchase price they would have to be honest.
eta: developer name removed from previous post!
ie; are they misreporting a sale of £190k? I only ask because they were so keen to sell it at the start that they said that i could pay just £170k for the house, and that would show up as a £20k deposit as they would report a £190k sale. Although she did get very nudge nudge wink wink about the whole thing and said that if the surveyor asked for the purchase price they would have to be honest.
eta: developer name removed from previous post!
The deposit would have to be down-it's part of the purchase price! The ONLY thing that can be seperate from the purchase price is options, we have just purchaed at 250K but options have pushed it up into the 3% bracket. So unless you have 20K's worth of options you will pay stamp duty(or they will).
Not really, the developer will say anything to get the sale. Screw them down on price so it's below stamp anyway then get freebies 
That developer is trying EVERYTHING around here, make sure you are buying 100% of the property too-they are offering 75% deals at the mo with the rest due within 10 years.
That developer is trying EVERYTHING around here, make sure you are buying 100% of the property too-they are offering 75% deals at the mo with the rest due within 10 years.AMCDan said:
could this have anything to do with the fact that the home was initially up for sale for ~£190k?
ie; are they misreporting a sale of £190k? I only ask because they were so keen to sell it at the start that they said that i could pay just £170k for the house, and that would show up as a £20k deposit as they would report a £190k sale. Although she did get very nudge nudge wink wink about the whole thing and said that if the surveyor asked for the purchase price they would have to be honest.
eta: developer name removed from previous post!
OH, oh dear..... She was suggesting you would be able to do a bit of mortgage fraud. ie; are they misreporting a sale of £190k? I only ask because they were so keen to sell it at the start that they said that i could pay just £170k for the house, and that would show up as a £20k deposit as they would report a £190k sale. Although she did get very nudge nudge wink wink about the whole thing and said that if the surveyor asked for the purchase price they would have to be honest.
eta: developer name removed from previous post!
That's not a great idea.
scotal said:
AMCDan said:
could this have anything to do with the fact that the home was initially up for sale for ~£190k?
ie; are they misreporting a sale of £190k? I only ask because they were so keen to sell it at the start that they said that i could pay just £170k for the house, and that would show up as a £20k deposit as they would report a £190k sale. Although she did get very nudge nudge wink wink about the whole thing and said that if the surveyor asked for the purchase price they would have to be honest.
eta: developer name removed from previous post!
OH, oh dear..... She was suggesting you would be able to do a bit of mortgage fraud. ie; are they misreporting a sale of £190k? I only ask because they were so keen to sell it at the start that they said that i could pay just £170k for the house, and that would show up as a £20k deposit as they would report a £190k sale. Although she did get very nudge nudge wink wink about the whole thing and said that if the surveyor asked for the purchase price they would have to be honest.
eta: developer name removed from previous post!
That's not a great idea.
scotal said:
AMCDan said:
Although she did get very nudge nudge wink wink about the whole thing and said that if the surveyor asked for the purchase price they would have to be honest.
eta: developer name removed from previous post!
OH, oh dear..... She was suggesting you would be able to do a bit of mortgage fraud. eta: developer name removed from previous post!
That's not a great idea.
I thought i'd worked that much out myself! re: the split equity thing.. That was an option, an 85/15 split, like you say 15% due within 10 years based on market value at the time you settle. Might be useful if things get much worse? can still save myself £1/2k if it goes down in value? They will also remove the cost of any improvements? I'm still waiting to confirm if it is cost or value... because i can buy some very posh carpets and appliances
This is how i worked-i wasn't interested in the basic house price-i knew we'd spec it right up. I faxed over my extensive list of options & put my offer in based on that. Of course the developer makes ££££ out of the options so it makes the lower offer on the house(the important bit from a tax POV) more attractive. They look at total profit so if someone had put the same offer in with zero options they'd probably get told where to go. Short & sweet of it-i was happy with the total cost & so were they.
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