New Home Owners And Snagging Forum
Home Owners => Solicitors and Legal Issues => Topic started by: New Home Expert on May 12, 2014, 10:16:17 am
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How to reduce your stamp duty liability
As property prices rise month on month, so does the proportion of buyers caught in the higher 3% threshold, on all homes between £250,000 and £500,000.
If you are buying a home and agree a price over the £250,000 threshold you should look at ways to agree to purchase "chattels" separately (priced separately in the contracts) to bring the property price below the £250,000 stamp duty land tax threshold.
Revenue and Customs state that movable items such as carpets, curtains, appliances and free standing furniture can be regarded as "chattels" and therefore exempt from stamp duty land tax.
Anything physically fixed to the property such as mirrors, fitted kitchens and wardrobes cannot be exempted.
There is nothing to stop you "valuing" carpets and curtains at £5,000, and "buying" in garden furniture, planters etc to get below the threshold for stamp duty purposes.
There were some mortgage deals that offer to pay stamp duty.
Halifax had one that would pay the stamp duty on properties up to £250,000 (worth £2,500) for first time buyers.
For more on stamp duty and to check your liability use our Stamp Duty Calculator (http://www.brand-newhomes.co.uk/stamp-duty-calculator.htm) here.
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This is really useful to know, when we were first time buyers we weren't aware that stamp duty was added on and it nearly wiped us out for a month