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Author Topic: Stamp duty tax avoidance becoming more widespread  (Read 10606 times)

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The Prophet

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Stamp duty tax avoidance becoming more widespread
« on: June 27, 2011, 11:40:12 am »
What was once a scheme used by wealthy foreign billionaire property buyers to avoid paying Stamp Duty Land Tax on multi-million London apartments is now being
recommended by financial advisors for more modest properties costing less than £1million.

By setting up a company to own residential property, an rich international buyer can sell the property by selling shares in the company without the need to re register
the property with Land Registry, triggering Stamp Duty. The Treasury is looking for ways to end this loophole with changes in the law proposed this autumn.


FirstTimeBuyerGuru

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Re: Stamp duty tax avoidance becoming more widespread
« Reply #1 on: July 18, 2011, 11:28:10 pm »
What's sorely needed is the ridiculous system whereby stamp duty comes in waves to be eradicated. It causes completely unnatural spikes in asking prices. Who in their right mind would buy a property for £250,001, only to trigger 3% in stamp duty!?

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Philofacts

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Re: Stamp duty tax avoidance becoming more widespread
« Reply #2 on: July 19, 2011, 08:31:14 am »
I couldn't agree more.
It is even worse when you are buying a property priced at £510,000.
The Stamp Duty Land Tax  increases (30%) by a massive £5,400 on  an increase in price of just £10,000.
A lot of the higher prices homes seem to be at £545,000 - £575,000.  You would be mad to pay more than £499,950 for any of them due to the stamp duty.
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