Stamp Duty Mitigation

[JoJo]

Is anyone able to offer any advice on stamp duty mitigation? My solicitor has put me forward to a firm that claim to be able to to pursue a full refund of SDLT. I'm now looking into it further and I'm learning that dependant on which scheme it is, the HMRC could later pursue me for non payment of tax, plus interest and a possible fine! I wondered if anyone had used the scheme and could advise what questions I need to be asking the firm who will deal with the work if I agree to it. It does sound to good to be true and worry about whether the HMRC are going to come after me later really isn't worth the saving.

Thank-you in advance

[IFA]

This might be of interest....

Conveyancing Solicitors and Stamp Duty Mitigation | Fridaysmove

Personally I would stay well away if it was me. I'd also be worrying about the credibility of my solicitor who suggested it and wondering how much he / she was earning by referring me to said scheme.

[Enness Private Clients]

JoJo - we have a very robust scheme - feel free to contact me on 020 806 6242 if you would like information

[Dan S]

Hi Enness Private Clients.

Could you please tell me on how your scheme for stamp duty mitigation works? It all sounds very interesting.

[IFA]

28th Oct 2011 - 1200 people are being investigated by HMRC regarding £35m of unpaid tax......

BBC News - Worries over stamp duty avoidance

An HMRC spokesman said: "The schemes rely on an interpretation of law that produces an outcome different from that envisaged when the law was enacted, and that HMRC does not accept."

[Dan S]

Another way people are doing it is to take advantage of the law that states you don't pay stamp duty if you'r buying 85% of a property.

So people buy as a couple (one buying 85% and the other 15%) and they instantly gift each other the other's share.

Not a good road to go down!

[Richard Webster]

Another way people are doing it is to take advantage of the law that states you don't pay stamp duty if you'r buying 85% of a property.

I'm fascinated to know where this comes from! Perhaps DanS could refer us to a link where this exemption is explained.

Generally if two people buy a property together SDLT is assessed on the price paid by them for the whole property so I can't see that it can work.

[Dan S]

Hi Richard,

Word of mouth via a solicitor dealing in it.

All the best,

Dan

[IFA]

Richard,

I think the following extract from the link that I posted above to the "FridaysMove" site may be of some relevance as it mentions the 85% exemption that DanS has aluded to...

"Specifically, by creating a nominee company to stand between the vendor and the purchaser, the company initially pays only 85% of the purchase price – as legislation stipulates that stamp duty is only chargeable on transfers of land “substantially performed”. The company then transfers the contract to the real purchaser, at which point the remaining 15% is paid to complete the purchase, which is subject to stamp duty."

Not sure if that makes any sense to you or not, it's way beyond my areas of expertise and personally I wouldn't get involved in anything like this myself.

[Richard Webster]

I would be very wary of that kind of thing - but it wasn't buying 85% of the property, but paying 85% of the price.

If I was HMRC I consider payment of 85% was substantial performance and charge SDLT on that!