Minimising stamp duty ?

[ssnrcs]

Hi

Have just agreed a purchase of a second hand home (primary residence) which has a stamp duty liability of 35K. However, have been told that I can legally reduce my stamp duty liability in two ways:

1. Purchase the house under my sons name ( over 18) and benefit from lower rate of stamp duty for first time buyers.

2. Agree a valuation for fixtures and fittings and reduce the purchase price accordingly for stamp duty purposes.

Has anyone experience of these approaches?

 

[mf1]

From what you've posted it looks as if the purchase price will be c.E465K so yes a first time buyer would pay less stamp duty. But are you intending to borrow? Is it your actual intention to benefit your child? Do you want to retain beneficial ownership of the property? Be sure of what you want to do before going down the road of putting an asset in anyone elses name. Plus Revenue take the view that if any portion of the purchase price ( including borrowings) is provided by a non f.t.b. then non f.t.b. stamp duty rates apply.

A very realistic valuation of fixtures and fittings may be accepted by Revenue - but nothing outrageous. If the effect of separately valuing the fixtures and fittings, brings the property price below a stamp duty threshold, then be aware that Revenue will seek payment of stamp duty at the higher rate applicable on the combined higher amount but payable on the property price only.

mf

 

[CCOVICH]

Hi

1. Purchase the house under my sons name ( over 18) and benefit from lower rate of stamp duty for first time buyers.

Will this not lead to your son being liable for stamp duty when he goes to buy a house of his own?