There are new concerns from the government regarding home buyers not paying there stamp duty.
The concerns have arisen after it was found a number of websites are giving tips on how to avoid paying your stamp duty. The HMRC (HM Revenue and Customs) are looking into the possibility of around £35 million pounds in unpaid tax. Working within this industry we here at Conveyancing Quote Now constantly here about these so-called loopholes.
Websites offering ‘Stamp Duty Planning’
By law, home buyers are required to pay between 1% to 5% stamp duty depending on the price of the property, unless they are first-time buyers. There are many websites offering free advice on “Stamp Duty Planning”.
These websites have calculators to show home buyers how much money they can save. This is a strong selling point to the visitor. The websites then offer two methods to ‘save’…
- Pay for chattels separate thus bringing down the costs of the property
- Set up a legitimate limited liability company to purchase the property and then sell to the homebuyer
As respectable Solicitors we would always advise clients to be very careful when reading about these “To good To be true” schemes. These loopholes haven’t been closed yet, but it is just a simple matter of time before the government and HMRC close them!