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brocken spectre

Is This Illegal?

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Property Priory Drive, asking for 10k fixtures and

fittings.

Look at the price. They are hoping to duck higher stamp duty.

Sure you can charge separately forfixtures and fittings as long as specified in the contract. After all, if you were selling somewhere with a huge garden you might be willing to negotiate a price for the ride-on mower, garden ornaments etc.

The general rule AFAIK is that if it's permanently fixed to the wall or floor it normally comes included, if it's moveable (carpets, curtains) it doesn't. As always there are grey areas which is why you get a long schedule from the solicitors to fill in when you sell a house.

BTW, HMRC can look quite hard at the valuation of the fixtures and hit you for increased market value of property if they reckon the price is unreasonable.

Edited by cartimandua51

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BTW, HMRC can look quite hard at the valuation of the fixtures and hit you for increased market value of property if they reckon the price is unreasonable.

They can, never heard of this happening however and I'm not sure they would ever get involved at this sort of level. What they are interested in is you selling somewhere for say £1 when it's worth £1 million.

When I say the would never get involved what I mean is they wouldn't have any knowledge of the "fixtures and fittings" deal going on, all they would see would be the selling price which might be a bit cheap but not totally unreasonable.

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I'm not sure they would ever get involved at this sort of level. What they are interested in is you selling somewhere for say £1 when it's worth £1 million.

On the contrary - I think they would be interested at this sort of level. A property selling for less than £250K to a first time buyer incurs no tax. Crossing that threshold will incur tax and add £7.5K to the cost. That's a bigger jump than you'll see at the £500K threshold. (Crossing that threshold will add £5K to the cost).

If anyone at HMRC is seeking to claw back some dodged taxes, I'd guess that property sales immediately below the £250K threshold are exactly the place to look.

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I spoke to a surveyor, who suggested at this price point, 3K would be pushing their luck.

The Taxman has become very interested in any property just below 250k . Basically bottom line is

you are committing Fraud; buyer beware!.

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They can, never heard of this happening however and I'm not sure they would ever get involved at this sort of level. What they are interested in is you selling somewhere for say £1 when it's worth £1 million.

When I say the would never get involved what I mean is they wouldn't have any knowledge of the "fixtures and fittings" deal going on, all they would see would be the selling price which might be a bit cheap but not totally unreasonable.

could be 1 sovereign for a house soon enough...

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In 2006 we had an offer accepted on a house for £275k. The solicitor told us that we could put it through for £250k and £25k fixtures and fitting, ride on mower etc. He said as long as the extras weren't more than 10% of the price it would be unlikely to raise any questions. We decided not to risk it.

Not long after we decided not to risk the house either and pulled out.

Edit for 06 not 07

Edited by Redhat Sly

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I had my house valued (just for fun) a few years back. The EA told me 249K, when asked why, he said that really it was worth more, BUT, crossing the threshold made it proportionally more expensive. He said that if it was on at £275K, it would not be a huge increase to me, but quite a lot more to the buyer.

Was I prepared to wait? he asked.

How many houses are thus priced to gain a quick sale, which the taxman may want to investigate? What would this do for price reductions generally?

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It seems to me to be one of the many stupidities in life that they have a threshold eg 250k and if it is

threshold+1, then you pay the rate on the whole lot not just the delta of 1gbp . This has been the way for

a long time otherwise I would have assumed it was a Gordon invented system... it has his style of

a lack of commonsense .

they really should make it that it starts at some threshold and is taxed at the rate on the amount *above* that ,

they could adjust the threshold and put up with a small loss for a sensible understandable system ...

but its politicos we're talking about here , so it wont happen.

.

cheers,

rockhopper

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they really should make it that it starts at some threshold and is taxed at the rate on the amount *above* that ,

That strikes me as an obvious improvement. In whose interest is it to have the current system? It just introduces some pricing "dead zones".

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  • 336 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% +
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      • Even
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      • up 5%



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