Stamp Duty

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Yes, on the face of it this is true.
The OP has stated his reasons for the transaction, motivation being a desire to help out his daughter and not to evade stamp duties, inheritance taxes, put assets out of reach of creditors, etc.
In a free market transaction with unconnected parties and no linked transactions or future use of the house then there should be no problems (however, IANAL and don't know the details of the various acts that cover Stamp Duty).
However, this does not seem to be an arms-length transaction, and as such there are probably a myriad of laws governing such matters. A solicitor shoudl be able to give chapter and verse on the Stamp Duty liablility, but a good tax accountant should be able to advise on other pitfalls as well.
Transactions (especially involving land and families) are not always as straightforward as they might seem to the layman.
cheers Richard
-- Richard Sampson
email me at richard at olifant d-ot co do-t uk
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Not quite with houses.
That is if you sold the house for less than the market value without paying the stamp duty *for the real market value* you would be evading tax. The details of all sales go to the District Valuer who alerts the Revenue to anything suspicious. He is paid to know the market value of property on his patch. Nobody particularly minds if you 'sell the house for what price you like' but the Revenue mind very much you thereby evading stamp duty.

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How much is stamp duty?
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1% under 250 IIRC
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http://www.netaccountants.com/stamp.html
Can't you guys use a search engine?
Andrew
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L Reid wrote:

Threshold for stamp duty is, currently, 60,000. Actual % at 60,001 escapes me but is payable on the whole sum, not the difference
Richard
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Indeed if you had a good sols, and got some 'extra bits and bobs' I suspect you could have knocked the value for the house under 60K anyway and said 2501 was for the fixtures (fridge/ wmachine ect). Paying 59950 for a house advertised at 62500 is within the realms of possibility, paying 35K for a house worth 3 to 4 times that isn't. I take it the property isn't in a deprived area? Would be exempt up to 150K then.
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Because it would be impossible to prove you were evading tax rather than negotiating a fair price. Selling a 220k house for 35k is pretty obvious and the OP's intentions are now documented in this newsgroup thread. Lets hope no one from the IR is reading!
Andrew
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Ben Blaney wrote:

Property can be transfered subject to charge.
Richard
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But the question was whether stamp duty would be charged on the price actually paid or the market value. I suspect (IANAL) that as this is a transaction between 'connected parties' the latter might be the case.
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wrote:

It certainly is for inheritance tax purposes. There are a whole bunch of rules with time limits and property transfer comes especially under scrutiny. It is possible to do asset transfers through the medium of a company or business and enjoy 50 or 100% tax relief, but only if the property was an asset of the business e.g. a premises from which the transferor carried on another business. It doesn't apply if the sole or main purpose of the business is property ownership and management.
The whole area of IHT and stamp duty is a minefield. Apart from IHT especially being completely iniquitous to begin with -the transferor already paid income tax - the operation of the system is a mess. Typically a bereaved person has to deal with with the incompetence of the Inland Revenue at a time when they can least do with it.
I really don't see the basis for any form of taxation on asset transfer between family members whether in life or at time of death.
It strikes me as an even bigger rip-off than National Insurance.
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Andy Hall wrote:

I'm reluctant to muddy the water even further, but no one has mentioned Capital Gains Tax so far. Couldn't this apply too in some circumstances?
Nick
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If, as I assume, it is the OPs principal residence then it is exempt. of course it is something to factor into the equation under some circumstances.
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On Wed, 06 Aug 2003 17:06:29 +0100, Nick Nelson

AFAIK, CGT does not come into play if the property is the primary residence.
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wrote:

The chances of this happening are nil, whatever the government. Stamp duty has several advantages to governments: inflation and fiscal drag mean that it brings in more each year without them doing anything and as nearly all property transactions have to go through the Land Registry it is all but unavoidable for ordinary mortals. Also the rates here are a lot less than in some countries - 6% in Victoria, Australia. We also pay estate agents a lot less than in some countries - IIRC something like 5% is the norm in the USA
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Audrey

Remember though - in many countries (USA and Austrialia certainly) the house prices are much lower, and a smaller proportion of income, so 5% may well sound high - but 5% of a 100k 4 bedroom house is the same as the 2% of a 250k 3 bedroom house around here (Guildford). If you don't go sole-agency then the 4% on 250k is just stupid! (10k).
As for stamp duty - 6% on 100k (6k tax) and 3% on 250 (7.5k tax) isn't too far different. Though when you're in the 1% bracket (<250k) then you're laughing (2.5k max).
D
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Audrey

In the USA they do a lot more for you. Some of the work they do is done by conveyance solicitors here. And I "believe" in the USA they do not have conveyance solicitors as the estate agent does it all, searches and all and no extra bills for this search and that search, etc. The gas/electricity/heating/air con, etc is also checked out.
Here all they do is measure up, take a photo and attempt to sell it as it is. Money for old rope.
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HRYK. Plus "real estate agents" in the US will often act on your behalf with respect to both buying and selling - none of the "my estate agent can't talk to your estate agent, he has to talk to my solicitor who will write a letter to your solicitor who may then write to your estate agent ... or not".
My opinion of estate agents here was established about 15 years ago when we sold a flat in London - to their credit, they did find a buyer within 24 hours of putting the property on the market, but then tried to charge us for (a) preparing and printing details, (b) taking photographs, (c) erecting a "for sale" sign, and (d) press advertising -- none of which they actually did.
Julian
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Audrey

I assume you never paid.
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Fortunately we had agreed to their terms and conditions before they found the buyer, which was clear that printing details etc. were to be charged as extras on top of the agreed % of the sale price. I suspect that they didn't intend to rip us off, and just sent out a "standard" invoice. Had we been unwary we could, though, have ended up several hundred pounds out of pocket.
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