SDLT avoidance schemes are they a scam?

[DollyTwat]

My best friend is buying a house for £420 and the estate agent has recommended a firm of solicitors specializing in stamp duty refunds.

They say they can save her £5000 or so. So I've done some digging on the net and it seems really dodgy to me. Does anyone know how these schemes work and if they're illegal? I've persuaded her not to do it but if it's legal maybe I've done the wrong thing.

I don't know anything about those schemes but you can check if they are proper solicitors on the law society website:

www.lawsociety.org.uk/choosingandusing/findasolicitor.law

thanks superpenguin, they are members of the law society. It isn't illegal as far as I can see, just very dodgy. I've actually looked at the contract tonight and would definitely advise against it and she's not doing it.

The wording says that as the IR hasn't been made aware of this scheme they won't declare it under any circumstances. So I think they send in the form with a nil return and wait the 9 months for it to be disputed.

She'd still be at risk for 6 years if the government decided to crack down and investigate all these schemes.

I'm happy to discuss the details of this type of tax planning with anyone who, like me, agrees with the principles set out and the subsequent case law established in the case of IRC vs Duke of Westminster (1936) 19 TC 490 where in his judgement Lord Tomlin stated - "every man is entitled, if he can, to order his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be".

It was this judgement that made Tax Avoidance a valid and legal practice, and provided it is done correctly and in accordance with the established rules and laws applicable, SDLT Avoidance is a legitimate and legal process in the same way that IHT Avoidance, CGT Avoidance and Income Tax Avoidance are.

To date over 3,000 satisfied customers have benefited the SDLT mitigation services we are able to arrange; of these 0.04% have been subject to enquiry and 0.00% of these enquiries have been upheld.

There's a SDLT calculator at bit.ly/cKmSgH - you can contact me via this link if you wish to discuss this topic further.

best regards

Darren Ferneyhough

Thanks for replying Darren, can you explain to me in simple terms how this works then? I thought stamp duty was payable on all houses unless they were in a deprived area, or you are a first time buyer.

I concluded that this particular scheme filed a form with no duty to pay then relies on the Inland Revenue to NOT query it.

They only promise to fight the case for you for free for the 9 month period.

Wouldn't you always have to have the amount ready for at least 6 years in case they revied the case?

To my knowledge, bit rusty I have to admit, stamp duty is payable on the purchase price of a house.

However, it is allowable to deduct the value of 'fixtures and fittings'. So, it depends what value can be 'reasonably' put on carpets and curtains etc.

Trying to argue that a fitted kitchen complete with 4-oven aga in a 1-off colour to match a favourite shade of nail varnish wasn't part of the fabric of the house might be a bit more difficult, though.

Hence a rather grey area.