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Personal and Tax Planning
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I'm selling my house - an enquiry about stamp duty.
I'm selling my house. I agreed a price with the buyers of £252,000, but now they've asked me to agree a price of £250,000 plus a separate £2,000 for the fixtures. Why?
Almost certainly, trying to save Stamp Duty.
On the original inclusive price of £252,000, the Stamp Duty your purchasers would have to pay is 3%, or £7,560. By reducing the price of the house to £250,000 and buying the fixtures separately, the Stamp Duty will reduce to 1%, or £2,500 - a saving for your purchasers of £5,060.
But will I get into trouble if I agree to this?
No - it's perfectly legal, so long as the price for the fixtures is reasonable.
Rates of Stamp Duty on land and property:
| Price £60,000 or less |
0% |
| Price £60,001 - 250,000 |
1% |
| Price £250,001 - 500,000 |
3% |
| Price over £500,000 |
4% |
Stamp Duty is paid on the full price, so if you buy a property for £60,000 there is no Duty to pay, but if you pay £61,000, there will be Stamp Duty of £610.00 to pay.
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