Need to move out of home soon!

[ClubMan]

very interesting quickquestio!! You are obviously a very loyal friend!

Loyal? How so? By ostensibly turning a blind eye on tax evasion while complaining that the Government does not deal with such abuses?

I contacted my solicitor and he told me I should not have to pay SD needlessly - particularly since this is the only property I own. He told me I could say I intended to live in the property and then ened up renting it.

He is completely wrong here - the fact that this is your only property is irrelevant. It was rented out from the start and never your PPR so you are liable for investor SD on it. Even if you had occupied it as your PPR and rented it out within five years of purchase then you would still be liable for SD by virtue of the clawback. I find it hard to believe that a solicitor is recommending tax evasion. Ask him to put this advice in writing and see what happens.

He said this is very common.

The fact that tax evasion may be common is no justification for it.

I explained how I wanted to get this sorted properly and he advised against going to the revenue directly with my hands up as they may needlessly take some of my money. Told me my best bet was to contact an accountant who I know, or an accountant in my family...........

At least we agree on this bit.

Anyone got any further advice on how I can get myself in the clear while minimising my liabilities? Any accountants on here?!

As I said before - talk to an accountant/tax advisor.

 

[RainyDay]

At least you are concerned about it, and genuinely seem to be unaware
of any wrong doing.

60% of my close friends who bought a house:
1) got first time buyers grant
2) payed no stamp duty due to new property and first time buyer owner occ.
3) claimed owner mortgage relief

then rented out their houses and pocketed the rent with out paying any
tax and are still doing so.

i also know of lots of other people who rent out houses and don't pay
tax, some with 4+ houses. At least 20 people just off the top of my
head with any deep looking.

So my mates get all the government to buy help to buy a house, then
get someone to pay their mortgage and get all that tax free
and then when they pick up a girl they bring them back to my house
So i pay my mortgage and obey the law along with providing my friends
a place to party.

Will this ever be tackled by the government??

WHy are you waiting for the Govt? Give Revenue a call with your friends details and sit back & watch the fun. It's only a matter of time before one of their tenants claims rent relief, alerting Revenue to the identify of the fraudsters. They may not be laughing when faced with Revenue bills for interest & penalties on top of the outstanding tax.

Remember all those 'cute hoors' in the 80's who were convinced Revenue would never find their bogus non-resident accounts? They're not laughing now.

 

[apd]

let us know the advice you receive lotus. as i know someone who may be in a similar situation.

 

[ClubMan]

let us know the advice you receive lotus. as i know someone who may be in a similar situation.

Have you alerted them to their potential liabilities?

 

[Vanilla]

Before you panic completely, why not do a simple check to see if you should have paid stamp duty or not?


Was it a new house? Did you purchase by contract for site and building agreement? If so, can you remember how much was apportioned for the site and how much for the house? Did it have a floor area cert.? Or was it a second hand house? Were there contents included?

Can you remember the exact date that you purchased the site ( if it was a new house by building agreement and contract for site) or the date that the purchase closed otherwise?

 

[ClubMan]

Was it a new house?

This is irrelevant if it was rented out from the start and never a PPR since investor stamp duty would still apply (unless it was under the relevant exemption threshold).

 

[dam099]

This is irrelevant if it was rented out from the start and never a PPR since investor stamp duty would still apply (unless it was under the relevant exemption threshold).

I note the poster said the property cost EUR 139,000, if that was the VAT inclusive price wouldn't it be under the exemption threshold of EUR 127,000 VAT exclusive?

 

[Vanilla]

This is irrelevant if it was rented out from the start and never a PPR since investor stamp duty would still apply (unless it was under the relevant exemption threshold).

Its not irrelevant since whether or not it was a new house could be the reason whether it was or was not under the threshold- for a number of reasons, firstly the VAT issue as previously pointed out, secondly because a house sold as a site plus building agreement has a different computation for stamp duty and thirdly because the date of the site transfer and not the date of closing of sale will be the relevant date for stamp duty.

 

[ClubMan]

OK - thanks to you both for the clarifications.

 

[lotus]

Hi all

Just to update people: I think I am sorted.



Contacted the revenue (stamp duty office and Mortgage interest relief office) and explained situation. They were quite helpful and informed me I would not have to pay any penalties. My solicitor (not sure if he deserves the title!) is sending on the original SD due and I think he had to get deeds again. Mortgage interest relief office were to calculate how much I had been overpayed and send a letter to me. Have not heard from them yet and its about 2 weeks ago since I spoke to them.



Am relieved to have it nearly sorted. Will be completely at ease when money has been paid over - still have slight feeling of panic since I havent recieved letter from mortgage interest relief office! At least I will be able to sleep easy when its all paid, knowing I am not evading anything.

Thanks to all who contributed advice, particularly Clubman. Appreciated