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LuckyOne

Grrr .... Now I Am Unhappy .....

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If 2011 looks a bit like 2008 on steroids, I might buy a house. I am starting to do my research and have talked to a couple of EAs.

To-day I received a phone call that really got my goat. It was from a finance guy associated with an EA. Once he accepted that I would only ever pay cash, he started to push a "stamp duty avoidance" scheme on me.

The offer that he made was a 50% savings that we share 50 / 50.

This really annoyed me :

- The two structures rely on Sharia law and phantom unlimited companies respectively. This smacks of tax avoidance and not tax management to me.

- The structures do not pass either the "smell" or the "newspaper headline" tests.

- Even if the schemes were completely legitimate despite the two concerns above, the risk / reward is out of line. They are clearly for the benefit of the sponsor and not the participant who is taking all of the risk.

- Even if the schemes were completely legitimate, they are not fair. I have admitted to being a non-dom before and accept that there is a risk that the laws here might change to an extent that the UK is not the best after tax and quality of life adjusted place for me to live and I might want to leave. These schemes are on a completely different level.

I do not think that the EAs finance guy understood my objections which must mean that stamp duty tax avoidance is very commonplace. I hope that these schemes get exposed and stopped.

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Phone your local tax office - see what they think about it :)

I talk with people at HMRC about once a quarter. I think that I will take your advice.

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If 2011 looks a bit like 2008 on steroids, I might buy a house. I am starting to do my research and have talked to a couple of EAs.

To-day I received a phone call that really got my goat. It was from a finance guy associated with an EA. Once he accepted that I would only ever pay cash, he started to push a "stamp duty avoidance" scheme on me.

The offer that he made was a 50% savings that we share 50 / 50.

This really annoyed me :

- The two structures rely on Sharia law and phantom unlimited companies respectively. This smacks of tax avoidance and not tax management to me.

- The structures do not pass either the "smell" or the "newspaper headline" tests.

- Even if the schemes were completely legitimate despite the two concerns above, the risk / reward is out of line. They are clearly for the benefit of the sponsor and not the participant who is taking all of the risk.

- Even if the schemes were completely legitimate, they are not fair. I have admitted to being a non-dom before and accept that there is a risk that the laws here might change to an extent that the UK is not the best after tax and quality of life adjusted place for me to live and I might want to leave. These schemes are on a completely different level.

I do not think that the EAs finance guy understood my objections which must mean that stamp duty tax avoidance is very commonplace. I hope that these schemes get exposed and stopped.

Two schemes?

I can understand how a company could be used for tax avoidance but Sharia law has no weight in the tax mans eyes. Or please someone show me where it does. My understanding is that in the UK it is at best a court of arbitration. Which would mean both parties would have to willingly agree to participate, for a ruling to be lawful.

Smells like a complete scam to me.

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Two schemes?

I can understand how a company could be used for tax avoidance but Sharia law has no weight in the tax mans eyes. Or please someone show me where it does. My understanding is that in the UK it is at best a court of arbitration. Which would mean both parties would have to willingly agree to participate, for a ruling to be lawful.

Smells like a complete scam to me.

I agree : It doesn't pass the smell test.

Somewhere in the fog of my memory, I seem to recall an old thread here about the number of homes that were designated as mosques / places of worship as a way to avoid stamp duty.

I think that I might have stumbled upon the reason why this is happening. As a non-practising Catholic (cringe / shudder), I cannot understand how any transaction relying upon Islamic Law would stand up to any degree of scrutiny.

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Two schemes?

I can understand how a company could be used for tax avoidance but Sharia law has no weight in the tax mans eyes. Or please someone show me where it does. My understanding is that in the UK it is at best a court of arbitration. Which would mean both parties would have to willingly agree to participate, for a ruling to be lawful.

Smells like a complete scam to me.

2007 budget changed the rules to make tax lower for Moslems who obey Sharia law.

(Applies to Christians too - God doesn't like usury)

http://news.bbc.co.uk/2/hi/business/6483343.stm

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Non-payment of stamp duty is not at all uncommon on leases in the commercial world.

The view used to be that you'd get it stamped if you had some dispute that ended up in court.

There are many, many schemes where, usually quite, large companies just take a view that they'll play the odds and just pay fines as and when they get caught/need to.

Road tax used to be quite a common one on large fleets based on the odd fine here and there was much cheaper than taxing the whole vehicle fleet. Since ANPR I'd have thought this has ended though.

Anything where the penalty is to simply pay what's owed or with perhaps some modest level of interest was always susceptible to these sorts of schemes.

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I agree : It doesn't pass the smell test.

Somewhere in the fog of my memory, I seem to recall an old thread here about the number of homes that were designated as mosques / places of worship as a way to avoid stamp duty.

I think that I might have stumbled upon the reason why this is happening. As a non-practising Catholic (cringe / shudder), I cannot understand how any transaction relying upon Islamic Law would stand up to any degree of scrutiny.

It won't actually be Sharia law which is applying. There are tax rules which are specifically designed to take into account people who want to use Sharia compliant mortgages and other forms of financing. Because the law can't be seen to be discriminating on the basis of religion, the same tax treatment is available to muslims and non-muslims alike.

In a previous life I used to see tax lawyers cooking up new property tax schemes on a very regular basis, and they were well aware of the advantages of some regimes intended for Islamic finance, but where the borrowers were not muslim.

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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