Stamp Duty Mitigation: Fact and Fiction

*** STAMP DUTY MITIGATION FICTION FACT There are many myths and misconceptions about stamp duty and this form of'tax planning on the internet, but very few definite answers. We have addressed some of the most common misconceptions and separated fact from fiction, helping to make stamp duty mitigation clearer to understand. MYTH The government doesn't like tax II TAX planning PLANNING FACT Clearly the government doesn't like tax planning, but with the support of a reputable tax strategist, stamp duty mitigation is completely possible. These schemes are carried out by trustworthy and hard-working solicitors regulated by the Solicitors Regulation Authority (SRA), which requires legal specialists to act in a client's best interests and ensure strategies comply with all relevant statute law. MYTH It can be a complicated, lengthy process FACT This area of tax planning requires... TIME EFFORT SKILL When the process is simple and straightforward, this is more often than not a reflection of the highly skilled tax strategist and their ability to put together a robust, legally sound plan. The process for you - the client - is virtually identical to a normal property purchase. More than 2/3 1TTi of families pay stamp duty when they move. MYTH It is exclusively for houses over £1m 1 MILLION FACT Buyers are liable for stamp duty when they spend over £125,000 on a property. Any person spending at least £250,000 can put a tax-saving strategy in place. £125,000 MYTH HMRC will investigate my tax planning FACT ONLY 3% Trustworthy strategists ensure complete legal compliance when tax planning, obtaining advice on taxation, property and compliance from top barristers so their work is legally robust OF 1 MILLION TRANSACTIONS ARE INVESTIGATED EACH YEAR 183,000 people pay the 3% tax band a year. MYTH It will make the property transaction longer FACT Tax planning does not need to add any time to a property transaction. 1 week It simply needs to start one week before contracts are before exchanged. MYTH The property will not be registered in my name (R FACT The purchaser of the property is named as the rightful owner and is on Land Registry documents. The purchase is identical to a normal purchase. The taxman took £4.9bn in stamp duty 2012/13. MYTH My mortgage lender will need to be informed FACT Top tax strategists ensure that the planning they offer is in strict compliance with The Council of Mortgage Lenders. Because of this, the lender is not affected and does not need to be informed. MYTH The vendor will need to participate or know of any tax planning FACT Stamp duty mitigation is a confidential matter, so no other party has to be involved. When working with a quality tax counsel, clients can trust that their tax planning will remain a private matter. By 2018 at least -75% of us will have to pay stamp duty of 1%. MYTH HMRC will know that I implemented tax planning FACT The best stamp duty strategies are known as non-DOTAS (The Disclosure of Tax Avoidance Schemes), where clients can be confident that nobody will be aware of their planning. SOURCES http://www.cdpcorporate.co.uk/ http://www.propertyhunter.com.my/v1/expert.php?id=14 http://www.pindene.co.uk/pdf/PIN-Feb2012-SDLT-Opinion-Piece.pdf http://www.taxsquare.co.uk/the-myths-about-stamp-duty-land-tax-mitigation/