Viewed stunning house yesterday which is just above stamp duty- £259k. Lady said she had an offer on the table but it fell through and in the meantime some people offered her £250k for it plus planned on sneaking her £5k on the side to avoid paying the 3% stamp duty. Surely that is very dodgy and what would happen if caught? Or does everyone do this and get away with it?
We plan on putting an offer in of £250k tommorrow.
It's done all the time but usually not for such a vast amount of money. The solicitors sometimes even suggest it. You pay the extra for 'fixtures and fittings' but it's got to be reasonable and £5k for fixtures and fittings is a bit steep, unless they're made of solid gold
Surely if it is priced at £259k the most the vendors could expect to get offered is £250k especially if you are in a good position - no-one in their right mind would offer any more. If she allegedly has another offer for £250k + and 'extra' £5k then why hasn't she accepted it? (Those buyes will also be paying stamp duty at 1% on top of that 5k). The Inland Revenue look very closely at purchases on or around the stamp duty threshold to make sure that no shenanigans have gone on (so our solicitor told us when ours was on the market in 2005 for £262k).
IIRC It has changed and Inland Revenue now require a list for fixtures and fittings, and they go over it with a fine toothcomb.
I used to work for Council Tax and Inland Revenue would monitor all house sales they would notify the Valuation Office if a 3bed sold for more money than it should, usually meaning it had been made into a 4 bed with planning and then the Council Tax band would be re-done.
I'd offer £250k and tell her you won't commit tax evasion. She can't realistically expect her house to be on the market for £259k and get someone to pay more than £250k.
we sold our flat for £250k plus £5k for fixtures and fittings. it was all done "officially" (not under the table) but at the same time there's no way the fixtures and fittings were really worth that much
that was 3 years ago so not sure if the rules have changed