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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10734
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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Hello, We have just received an asking price offer on our

Customer Question

We have just received an asking price offer on our home of £1,050,000. However the purchasers want to pay £1m for the property and the remaining £50k as a payment for fixtures/fittings etc. so as to keep the property below the Stamp Duty threshold.
This does not sit comfortably with either my partner or me. There is no way the fixtures and fittings are worth £50k to start with, which I am sure HMRC would pick up on. Additionally we are both in the 40% tax bracket and feel there may well be a further tax implication for ourselves.
Could you please advise?
Submitted: 3 years ago.
Category: Law
Expert:  Aston Lawyer replied 3 years ago.

Hello and thanks for using Just Answer.

My name is ***** ***** am happy to assist you with your enquiry.

You are indeed correct in feeling uncomfortable with this arrangement. Although your Agents may not appreciate the potential consequence, your Solicitor will certainly not be prepared to proceed on this basis unless you can provide to him a list of the fixtures/fittings together with an estimated value to show that they are indeed worth £50,000. Without you providing this list, the Solicitor will not proceed, and will advise you that even if he did, you (and him), together with your Buyer are all guilty of tax evasion, which is punishable by a prison term!!

HMRC have 12 months from completion to investigate any Stamp Duty queries, and they ar eentitled to request from your Solicitor a copy of the Contract, which will show what additional price you have sold any fixtures and fittings for. So, unless there is a suitable price list attached to the Contract itemising the fixtures, they may well ask further questions.

So, please don't do it- it is not worth the risk, and as I have said, your Solicitor should refuse to proceed on this basis even if you were prepared to take the risk.

I hope this assists you and answers your question.

Kind Regards