Risk of and Revenue Penalties of avoiding S/D

Hey People,

I know this is a loaded question that's probably been answered throughout collective posts but I'm really just looking for an informed opinion and a straight answer (if there's such a thing!).

Basically, myself and my fiancée are buying a house, she is a FTB and I am not. We have been advised "off the record" that some solicitors will process the paperwork with only one name on the deeds while both our incomes being considered for the mortgage loan, therefore avoiding s/d.

From reading between the lines, this is a loophole but still illegal, and you are leaving yourself liable to "Stamp Duty, Interest and Penalties" should the revenue come knocking on your door at some point down the line.

Can anyone share an informed opinion or comment on whether this is high risk and doesn't anyone know what the "interest and penalties" are.

I appreciate taking the time to read and appreciate in advance your comments,

Thanks,

K

I don't think you'll get many responses to that query - advice won't be given to assist tax evasion (it's the rule on this site - and a good one IMO)

Interest is usually charged at the contract interest rate I believe - I think it's around 6% a year. Don't know what the penalties are but they are usually expressed as a %age of the original amount owed, increasing over time ('till payment).

Revenue is (rightly) getting more on top of chasing down stamp duty and there are a few threads on here from people who (mistakenly or otherwise) rented out houses within the 2/5 year clawback period and got letters from Revenue and now have to pay the correct stamp duty. I also doubt if any solicitor worth his/her salt will assist in evading SD.

Unless the house is bought by your fiancee and the mortgage is paid by her alone, then SD would be payable.

Even though this country is quite obviously rotten to the core, I suspect that you'll get the standard line that AAM doesn't advise (the common man) on possible tax evasion.

kneelo said:

From reading between the lines, this is a loophole but still illegal, and you are leaving yourself liable to "Stamp Duty, Interest and Penalties" should the revenue come knocking on your door at some point down the line.

Click to expand...

You have your answer there and yes other people have done it but it's a high risk which will hang over you forever, don't forget Revenue lasts forever.