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miko

£140 Million House Stamp Duty Excempt

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Last month a mystery foreign buyer paid £140 million for Park Place near Henley by using a single asset company they avoided the £7 Million Stamp duty and are unlikely to pay any capital gains tax if and when they sell at a profit. This is alongside Roman Abramovich using the same tatics to buy another house priced at £90 Million in Kensington Palace Gardens. Almost all the multi-million pound properties at One Hyde Park were aquired through offshore companies which means on stamp duty will be paid on them either.

You would think as we are all in this together CALL ME DAVE might start to try paying some of the debt off by closing these loopholes and prising some tax from the deals .

But then the Man is to busy penny pinching from those at the bottom to ever go after his own cronies .

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Last month a mystery foreign buyer paid £140 million for Park Place near Henley by using a single asset company they avoided the £7 Million Stamp duty and are unlikely to pay any capital gains tax if and when they sell at a profit. This is alongside Roman Abramovich using the same tatics to buy another house priced at £90 Million in Kensington Palace Gardens. Almost all the multi-million pound properties at One Hyde Park were aquired through offshore companies which means on stamp duty will be paid on them either.

You would think as we are all in this together CALL ME DAVE might start to try paying some of the debt off by closing these loopholes and prising some tax from the deals .

But then the Man is to busy penny pinching from those at the bottom to ever go after his own cronies .

Even earnings arising in the UK are not taxed if you are mates with the right people.

http://en.wikipedia.org/wiki/Sir_Philip_Green#Tax_avoidance

Good mate of Dave and Osborne.

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Stamp duty is a stupid tax. The ease of avoiding it just serves as one demonstration of that.

Solution: a land value tax on owners, to replace all the existing crap including council tax, business rates, and stamp duty. Or in the case of stamp duty, perhaps revert to a fixed fee - in the same ballpark as a passport fee - for relevant paperwork.

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Stamp duty is a stupid tax. The ease of avoiding it just serves as one demonstration of that.

It's not that easy to avoid; the buyer can't avoid it himself. The offshore *seller* of the property must put the avoidance scheme in place, and there are substantial up-front and ongoing expenses in such a scheme.

This only makes sense for buyers of super-expensive property (in the 10s of millions) where the vendor (who is themselves based offshore) has access to sufficient off-shore and on-shore expert lawyers, etc. that they can arrange this for their buyers.

Edited by ChumpusRex

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Last month a mystery foreign buyer paid £140 million for Park Place near Henley by using a single asset company they avoided the £7 Million Stamp duty and are unlikely to pay any capital gains tax if and when they sell at a profit. This is alongside Roman Abramovich using the same tatics to buy another house priced at £90 Million in Kensington Palace Gardens. Almost all the multi-million pound properties at One Hyde Park were aquired through offshore companies which means on stamp duty will be paid on them either.

You would think as we are all in this together CALL ME DAVE might start to try paying some of the debt off by closing these loopholes and prising some tax from the deals .

But then the Man is to busy penny pinching from those at the bottom to ever go after his own cronies .

...c'mon...Abrov provides employment for all these pensioners playing for Chelsea.... :rolleyes:

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It's not that easy to avoid; the buyer can't avoid it himself. The offshore *seller* of the property must put the avoidance scheme in place, and there are substantial up-front and ongoing expenses in such a scheme.

This only makes sense for buyers of super-expensive property (in the 10s of millions) where the vendor (who is themselves based offshore) has access to sufficient off-shore and on-shore expert lawyers, etc. that they can arrange this for their buyers.

The schemes I am aware of are relatively easy to set up, and make financial sense for anyone buying above £1m.

There is also no need for either buyer or seller to be truly offshore. It's just about setting a property holding company up, offshore. Surprisingly straightforward and becoming common at this end of the market.

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It's not that easy to avoid; the buyer can't avoid it himself. The offshore *seller* of the property must put the avoidance scheme in place, and there are substantial up-front and ongoing expenses in such a scheme.

This only makes sense for buyers of super-expensive property (in the 10s of millions) where the vendor (who is themselves based offshore) has access to sufficient off-shore and on-shore expert lawyers, etc. that they can arrange this for their buyers.

No excuse....one law for the rich in the know, and one for the poor who don't know.....fairness for all, equality for all, is nonexistent.....the rich continue to get richer the poor end up paying the price. :ph34r:

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No excuse....one law for the rich in the know, and one for the poor who don't know.....fairness for all, equality for all, is nonexistent.....the rich continue to get richer the poor end up paying the price. :ph34r:

Agreed, it's a loophole that needs to be closed.

Even for the 'poor' who do know, it's not a viable option as the setup costs will be greater than the savings at a purchase under £1m.

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.....fairness for all, equality for all, is nonexistent.....

Duh. Poor people pay zero tax when they buy a house ( < 125 or 250K ?), the same as this rich person is paying. Perfect equality :D

Stamp duty in general is the most unfair tax of all, pouring more pain on the areas that already suffer from high prices.

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Duh. Poor people pay zero tax when they buy a house ( < 125 or 250K ?), the same as this rich person is paying. Perfect equality :D

Stamp duty in general is the most unfair tax of all, pouring more pain on the areas that already suffer from high prices.

Wrong

It is not perfect equality . Under 125 is exempt , between 125 and 250 it is 1 % many poor people depending on someones definition of poor could fall into that bracket . Then there are those neither poor or rich they pay anywhere between 1 and 4% . For perfect equality everyone would be paying stamp duty the poor the middle and the rich we are far from that .

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This is alongside Roman Abramovich using the same tatics to buy another house priced at £90 Million in Kensington Palace Gardens.

Only because I read it in the Daily Mail today

Sebastian O'Kelly. Property Editor. Market Watch.

Last week I reported that Roman Abramovich had bought a £90million house in Kensington Palace Gardens through a company share structure that would have resulted in a five percent saving in Stamp Duty Land Tax. In fact, although the house's current registered owner is an offshore company rather than a named individual, Abramovich's purchase is still being finalised. I am assured that when the deal is completed the property will be registered anew on the Land Registry and five percent Stamp Duty Land Tax will be paid.

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No excuse....one law for the rich in the know, and one for the poor who don't know.....fairness for all, equality for all, is nonexistent.....the rich continue to get richer the poor end up paying the price. :ph34r:

and if you look at the statistics it becomes abundantly clear that the poor have got richer during the last 30 years as well.

currently the "poor" are about as rich as the average family was in the 1970s, as well as having things that didn't exist in the 70s, like the internet, personal computers and mobile phones etc :rolleyes:

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One of the easier tax dodges, although I think the tax itself is stupid (not in terms of taking money, in terms of form and structure).

If I recall correctly, the Miliband family used something similar to avoid taxes (cgt? Inheritance? Stamp? Can't remember the details but there is a good article about it somewhere) on more modest, but still million pound plus, properties.

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Only because I read it in the Daily Mail today

Durrr

Because its in the Sunday Mail not Daily Mail does that mean that it never happened .

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and if you look at the statistics it becomes abundantly clear that the poor have got richer during the last 30 years as well.

currently the "poor" are about as rich as the average family was in the 1970s, as well as having things that didn't exist in the 70s, like the internet, personal computers and mobile phones etc :rolleyes:

Well if the rich paid a fair proportion of taxes then the poor could be even better off . .

Do the rich not have internet, personal computers and mobil phones ? :lol:

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Well if the rich paid a fair proportion of taxes then the poor could be even better off . .

Do the rich not have internet, personal computers and mobil phones ? :lol:

Actually if the rich paid a fair proportion of taxes, we'd be even worse of. As it is, the rich pay an unfair proportion* as income tax bracket goes up the more you earn.

* Apart from the really rich 0.1% or whatever, who pay bugger all.

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  • 284 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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