Avoiding Stamp Duty Threshold

[ScallyFloss]

The house we were buying has fallen through, so we are looking for another.

The housing market is dead here, and we are one of very few buyers in the area. We have found one that was originally up for £300,000 and has dropped to £275,000 as they are relocating and need to sell quickly. Basically our top budget is £250,000 so we have offered this. They are considering £250,000 but really need a minimum of £255,000. This then takes us into the 3% stamp duty bracket, so we couldn't stretch to that.

Is there a way of making that extra £5,000 not liable for stamp duty and call it the cost for fixtures and fittings, or is £5,000 too higher figure for that type of thing? There are builty in ovens, dishwashers etc in the kitchen.

Thanks

Yes, if they are leaving that kind of stuff you could probably get away with £5k, it's not very much in the grand scheme of house buying. Your solicitor should have an opinion on this.

We discussed this with our solicitor recently. F&F would have to be itemised and stand up to possible scrutiny by HM Revenue, so you couldn't put "curtains to value of £2000" for example. If there is genuinely £5000 worth of items (that are not listed as included in the house details) then there is no problem doing this.

OP be very careful. HMRC are cracking down on this. You cannot include any integrated appliances or anything that would damage the house if moved. You can only include free standing items and carpets and all priced at their reasonable second hand value. Get a good solicitor to support you in this process.

pity you deal with the vendor directly. a gift of "5000" would have nothing to do with the sale

but equally such a "gift" wouldn't be enforceable. HMRC are very aware fi the loopholes people try to use when buying around the thresholds. Built-in kitchen appliances are unlikely to stack up to £5k.

I think your seller is unrealistic. Nobody in their right mind would pay £255k

I would just say £250 and thats my final offer, as that is all they will get from anyone.

starwisher the vendor has every right to ask for the extra money it might be that they need it for fee's etc having to drop our last house 50 grand to sell. i really feel for them.

if someone did that to me i would tell them to do one.

You have every right to ask but not to expect

I had to drop our house price by 60k.

Well, if you told them to do one they probably would to be honest. Most people wouldnt pay over £250 becuase it costs them so much more in stamp duty once you go over 250.

Very much the same around here, I would get them to list every to be included in F&F - any furniture they could leave behind too? Then realistically look at what you could pay for it.

We looked at moving recently and there was no way I was leave behind my £650 water softener without them paying something for it, nor my new integrated dishwasher or cabinet mounted microwave!