stamp duty query

Hi The wife and I have had an offer accepted on house whose value is 8k above a stamp duty threshold.The estate agent has recommended paying a sum below the stamp duty threshold as the value of the house,and as a separate transcation, a sum of 10k to the vendors.Is this classed as tax avoidance, or tax evasion? ie is it merely immoral,or is actually illegal to do this?there would be a "saving" of 10k.

d

it don't matter...you pay the actual rate based on the total amount of the transaction....so if you pad 310k for house and 10k for furniture you pay the rate that 320k would fall into. BUT you pay the rate on the cost of the house, i.e. you pay the rate for 320k, but you pay it on the actual 310k

..but could the payment of 8k be classified as a separate transaction?


d

There is a very good thread on this point on this site- use the search facility to search for "Stamp Duty - need to pass assets by delivery"


mf