I am about to purchase a smallholding in Wales. It consists of the main farmhouse with an attached but totally independent annex. Total asking price is £365k. To reduce Stamp Duty would it be viable to split the purchase price i.e £150k for the annex and
£215k for the farmhouse. Would this arrangement be legal from a tax point of view ; and/or incur substantial legal/ land registry difficulties. The vendor is willing to negotiate if within the law.
2007-03-15 12:58:59 · 4 answers · asked by littletoe 1 in Business & Finance ➔ Taxes ➔ United Kingdom
Mmmm. I think you could lay yourself open to charges of tax evasion if you try to be too clever.
It depends on the title deeds; if they show the two buildings together, I don't think it'll be viable to split it.
2007-03-15 13:09:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Sadly, they will be all over you for this one. As the same purchaser you would never get away with it. IF... you could get someone else to buy one of the plots for you (in a different name) you might get away with it if you leave the transfer a year or two, but is it really worth the hassle to save a relatively small amount of money?
2007-03-16 06:06:07 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I am in a similar situation and i have researched the whole thing on the HMRC.gov.uk website but was not able to find a way.
The only thing I saw but it did not quite help was the bit about whether it was residential or business or whether the property was located in an area that they deem to be eligible for 'Disadvantage Area Relief' where they offered relief on such transactions. See website enclosed .http://www.hmrc.gov.uk/so/dar/index.htm
2007-03-16 08:49:52 · answer #3 · answered by Ragga 1 · 0⤊ 0⤋
You ain't gonna save enougth dosh to make that kind of risk, however it might be different if you were talking in the MILLIONS.
2007-03-16 07:18:57 · answer #4 · answered by bluecow 5 · 0⤊ 0⤋