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jon

Stamp Duty To Sting Btl

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There was a short article on the front of this Sunday Telegraph's money section indicating the Inland Revenue would be treating the purchase of multiple properties from the same development as one transaction, thus giving rise to a stamp duty charge on the sum of the purchase price, where before no stamp duty would have been payable had the properties each been below the stamp duty threshhold.

The article pointed out that would obviously affect BTL speculators the most.

Anyone else spot this?

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There was a short article on the front of this Sunday Telegraph's money section indicating the Inland Revenue would be treating the purchase of multiple properties from the same development as one transaction, thus giving rise to a stamp duty charge on the sum of the purchase price, where before no stamp duty would have been payable had the properties each been below the stamp duty threshhold.

The article pointed out that would obviously affect BTL speculators the most.

Anyone else spot this?

The IR surely have always had the opportunity of doing this Jon? They often lag but generally catch up quickly.

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The IR surely have always had the opportunity of doing this Jon? They often lag but generally catch up quickly.

You'd have thought so wouldn't you, but that wasn't the impression that I got from this article. Can't believe the IR would have missed out on this opportunity for so long.

Maybe they'll backdate some stamp duty ;)

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does this work with SIPPS as well????

that would be a real bummer for anyone wanting to buy wouldn't it?

...1/2% of all your purchase price would be a nice little tax-grab for gordon!...not to mention it's all locked in and illiquid during the slide.....ouch!

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does this work with SIPPS as well????

that would be a real bummer for anyone wanting to buy wouldn't it?

...1/2% of all your purchase price would be a nice little tax-grab for gordon!...not to mention it's all locked in and illiquid during the slide.....ouch!

As far as I am aware stamp duty IS charged on transactions within a SIPPS, although I am basing this comment on what I know to be the case for ISAs, a similar tax free wrapper.

Can't really see it would have much affect on SIPPS however. Most would find trouble buying a sub-stamp-duty threshold (120k) prop into a SIPPS, let alone a threshold breaking portfolio.

To be frank, breaking up the purchase of multiple BTL units into separate lots to sneak them under a particular threshold* seems like a clear case of tax avoidance.

I wonder whether Lady Lea bought her bankruptcy-inducing off-plan properties in this tax avoiding manner. If so she could still find herself liable for a debt to the tax man, as I note:

Once a debtor has been discharged from bankruptcy, they are no longer liable for any outstanding debts, as long as they were detailed in the bankruptcy proceedings. ( What are the advantages of bankruptcy? PayPlan )

Perhaps she could enlighten us. Would seem rather too harsh considering the hammering she has already taken.

_________________________________________________________________

(* for reference : stamp duty thresholds

Up to £120,000 - nil

£120,001 to £250,000 - 1%

£250,001 to £500,000 - 3%

More than £500,000 - 4% )

Edited by Sledgehead

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As far as I am aware stamp duty IS charged on transactions within a SIPPS, although I am basing this comment on what I know to be the case for ISAs, a similar tax free wrapper.

Can't really see it would have much affect on SIPPS however. Most would find trouble buying a sub-stamp-duty threshold (120k) prop into a SIPPS, let alone a threshold breaking portfolio.

To be frank, breaking up the purchase of multiple BTL units into separate lots to sneak them under a particular threshold* seems like a clear case of tax avoidance.

I wonder whether Lady Lea bought her bankruptcy-inducing off-plan properties in this tax avoiding manner. If so she could still find herself liable for a debt to the tax man, as I note:

Once a debtor has been discharged from bankruptcy, they are no longer liable for any outstanding debts, as long as they were detailed in the bankruptcy proceedings. ( What are the advantages of bankruptcy? PayPlan )

Perhaps she could enlighten us. Would seem rather too harsh considering the hammering she has already taken.

_________________________________________________________________

(* for reference : stamp duty thresholds

Up to £120,000 - nil

£120,001 to £250,000 - 1%

£250,001 to £500,000 - 3%

More than £500,000 - 4% )

Excellent! I've just rushed out and put in an offer of £250,000.50. This falls outside all the thresholds.

:D

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  • 339 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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