Using Personal Chattels to Avoid SDLT (Stamp Duty Land Tax, is a risk many take, even if sometimes they believe to be “honest to God” playing by the rules. Chattels are items, such as items of furniture, which do not form part of the fabric of the land or building. They can be transferred from the seller to the buyer along with the land as part of a conveyancing transaction, but sometimes people try and “overvalue” chattels. It is often done to reduce the SDLT fee, but this is monitored very closely by HMRC and tax You must pay your SDLT to HMRC within 30 days of completion. evasion office.
If you purchase property or land in England and Northern Ireland you need to pay Stamp Duty Land Tax. You must pay your SDLT to HMRC within 30 days of completion. Rules vary if you’re buying land or property, both residential or commercial, and also if you’re a first time buyer (in which case you’ll benefit from tax relief if the property is under £500k). Different rules also apply to Scotland and Wales. If there’s a mutual agreement between the buyer and seller to include chattels in the final price of the property, then the amount added to the final price, or the value of the chattels, will not be charged to SDLT.
So how much SDLT would you be likely to pay, when considering personal chattels? The total value you pay stamp duty land tax on, is sometimes called ‘consideration’. The ‘consideration’ might include payments such as goods, services, debt and outstanding mortgage. If you need any further information and are concerned about what will be included and excluded in the overall payment of SDLT, please give us a call. SG
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