Stam duty on a property bought under market value

[BrilloPad]

There are people who sell the house for £1 and the carpets and curtains at £599,000

I think the tax collectors get a bit upset by this and come round and stab you mind.

If you were talking about £510k - divided 499/11 you might get away with it.

From what I have read so far looks like this 400 is divided 200/200 - half now half later.

[Royston Vasey]

Your solicitor will have to answer this question when completing the SDLT 1 form

SDLT1 Q57. Purchaser and vendor connected.

You must answer this question.

Answer ‘Yes’ if any purchaser is connected with any vendor; if not then answer ‘No’. For a full

account of connected persons see section 839 Income & Corporation Taxes Act 1988.

Legally he will have to answer "yes" which may lead to HMRC checking out the market value of your purchase.

[TheFaQQer]

If you are connected, then the solictor has to declare it. You then have to declare the value of the asset.

If you are not, then it's not a problem.

If you didn't pay tax on the perceived value of it, then every parent close to death would "sell" their assets to a relative for £1 and pay no tax on them at all.

[b0redom]

Simple answer:

Divorce your Mrs
She buys the house
Remarry your Mrs
She gifts the house to you *















*or may run away with the milkman and £200k profit

[Ardesco]

Get 3 estate agents to come and have a look at the house and value it at £200k because it needs extensive modernisation.

Buy it at £200k and stick two fingers up at HMRC.

The silly thing is that if the doom sayers are right the house will only be worth £200k in 2 years anyway