A way around stamp duty ??

[loadsofmoney]

There have been numerous questions here in recent months as to how a person can avoid stamp duty on the purchase of a second home.
I have just heard how one canny builder has come up with a way to avoid stamp duty on the sale of his houses, which sell for 250 K.
He sells the land seperately to you for 100k and then sells you the house for 150 K. Both of these figures are under the stamp duty thresholds and hence the buyer does not pay stamp duty on the 250 K.
Ingenious or what ???

 

[mf]

If the site purchase and contract to build/ sell are related contracts, then they fall within stamp duty remit. Remember also that anything that looks too good to be true normally is.

Purchasers may be able to avail of f.t.b. relief, or relief if they are owner occupiers and may legitimately not pay any stamp duty BUT if the purchasers are investors then stamp duty will be paid at full value at full rate.

If there is no connection between the vendor of the land and the builder and if the purchaser genuinely employs the builder to build, then they are not related contracts.

I don't think its ingenious.

mf

 

[EAMONN66]

from oasis

If the area of the house or flat is greater than 125 sq. metres (1,346 sq. feet), some stamp duty is payable if the Chargeable Consideration is above the relevant exemption threshold. (The stamp duty is assessed on either the cost of the site or 25% of the cost of the site plus the building costs (less VAT), whichever is the greater figure. This figure is called the Chargeable Consideration.