Reply to: Stamp Duty Avoidance

[d000hg]

The best way to avoid the duty is to buy a cheaper house.

[speedo]

It's a punt like driving 150 mph down the motorway at night. Fun if you don't get caught, not so fun if you do.

HTH BIDI

I like the analogy!

[DimPrawn]

The actual schemes are complicated, involve buying the property via an offshore business (no stamp duty on buying business premises) and then transferring the property to you.

If HMRC doesn't notice, you get away with it and if the property is expensive, you save a fortune.

If HMRC do notice, you get a lot of grief and possibly have to pay the money you should have paid.


It's a punt like driving 150 mph down the motorway at night. Fun if you don't get caught, not so fun if you do.

HTH BIDI

[Pondlife]

their independent lawyers will carry out the survey etc. it does seem dodgy.. but is it worth a punt to save 15k

No. Read the links.

[speedo]

That sounds massively dodgy to me! Would you not have to pay two sets of conveyancing fees? And presumably if you want a mortgage this is a non-no as well?

their independent lawyers will carry out the survey etc. it does seem dodgy.. but is it worth a punt to save 15k

[d000hg]

if you Google it there are companies that help you do this - their policy is something like the following - as you exchange, you exchange again to an agent who then sells the house back to you again..... the whole exchange and exchange occurs simultaneously and therefore eliminates the stamp - the 50% is the fee to the agent.

I am sceptical so wanted to know if anyone has carried this out without any issues?

That sounds massively dodgy to me! Would you not have to pay two sets of conveyancing fees? And presumably if you want a mortgage this is a non-no as well?

[AtW]

Interestingly enough, the Labour Party used a mitigation scheme to save themselves £210,000 in stamp duty:

Labour's 'tax dodge' on sale of HQ saved £210,000 stamp duty - UK Politics - UK - The Independent

This is allowed because politicians have got special dispensation for dishonesty.

[cailin maith]

And he doesn't mean a pic of your sisters face.......

[Martin@AS Financial]

Oh, just to note both said forget it as well. It's not worth it.

Very true. Previously these stamp duty mitigation schemes where done by buying the property through a specifically created company to benefit from a lower tax threshold. HMRC are now however retrospectively going back to see who they can catch out.

Interestingly enough, the Labour Party used a mitigation scheme to save themselves £210,000 in stamp duty:

Labour's 'tax dodge' on sale of HQ saved £210,000 stamp duty - UK Politics - UK - The Independent

[AtW]

It is being creative... just as you save tax when you bill through a LTD!

[speedo]

Oh you dirty tax avoider!

It is being creative... just as you save tax when you bill through a LTD!

[AtW]

Anyone used any schemes to reduce stamp duty when purchasing a house?

Oh you dirty tax avoider!

[speedo]

It's also not allowed any more. I was looking to get a new place a few years ago and was told that it had been stamped down on hard.

thanks guys...

[b0redom]

It's also not allowed any more. I was looking to get a new place a few years ago and was told that it had been stamped down on hard.

[northernladuk]

Oh, just to note both said forget it as well. It's not worth it.