Stamp Duty & Fixtures/Fittings.
Discussion
Hey guys,
I'm currently selling a flat for £275k, and have an interested party. They've asked whether they can pay £250k plus extra for fixtures/fittings and I'm wondering what is allowed to legally be included. Obviously not wanting to be getting involved in tax evasion etc, but can I include kitchen white goods (all new), the furniture etc? What about things like carpets? Does everything need a receipt (don't have one for everything)?
Cheers!
Dom
I'm currently selling a flat for £275k, and have an interested party. They've asked whether they can pay £250k plus extra for fixtures/fittings and I'm wondering what is allowed to legally be included. Obviously not wanting to be getting involved in tax evasion etc, but can I include kitchen white goods (all new), the furniture etc? What about things like carpets? Does everything need a receipt (don't have one for everything)?
Cheers!
Dom
I think the onus is on the buyer to be seen to not be evading stamp duty using this technique.
I remember from looking at doing this myself, my solicitor advised much over 5k could be seen as suspect.
I was advised not to do it as a buyer, but if I recall correct I certainly got the impression that it wouldn't affect the seller.
Check with your solicitor, if they are in any way doubtful of this then they will certainly tell you!
I remember from looking at doing this myself, my solicitor advised much over 5k could be seen as suspect.
I was advised not to do it as a buyer, but if I recall correct I certainly got the impression that it wouldn't affect the seller.
Check with your solicitor, if they are in any way doubtful of this then they will certainly tell you!
Cheers mate - I'm surprised to hear it may all be on the buyers shoulders, I've not yet instructed a solicitor (as i haven't accepted an offer) but will try and get in touch with one to discuss a bit further. It'd be selling the flat for £250k (well, £249,999.99) and then around £15k of chattels inc all white goods (brand new and fairly expensive), carpet, curtains, brand new TV etc...expect it'd be quite obviously suspect to the tax man so may well be investigated! I'd have receipts for some of it but by no means all!
Dom
Dom
Right on a stamp duty band is highly likely to attract attention. While this is mainly an issue for the buyer, as a seller I wouldn't want to be in a position of aiding and abetting... In fact I'm surprised the buyer's solicitor is willing to go along with this.
Also you need to be careful that it is fair market value being attributed to the fixtures and fittings, not their original purchase cost. Second-hand white goods/carpets/furniture, however recently purchased, don't tend to sell for close to original purchase price.
As a buyer, the only time I have split consideration was in a clear-cut case where there were building materials on site at the time of purchase, that were also being sold, and I had my surveyor independently value those materials. This also wasn't a case of being close to a stamp duty boundary.
Also you need to be careful that it is fair market value being attributed to the fixtures and fittings, not their original purchase cost. Second-hand white goods/carpets/furniture, however recently purchased, don't tend to sell for close to original purchase price.
As a buyer, the only time I have split consideration was in a clear-cut case where there were building materials on site at the time of purchase, that were also being sold, and I had my surveyor independently value those materials. This also wasn't a case of being close to a stamp duty boundary.
I think you might be able to get away with £5k or £10k for fixtures and fittings but any more than that and I would think it would raise suspicion. Whether it is you avoiding the tax or not I wouldn't want to be seen to be complicit. I'm sure HMRC looks at transactions that go through at prices at or just below the stamp duty threshold.
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