Getting Your Chattels in a Twist ; Our Lawyer Answers Your Questions

Evening Standard - London › September 02, 2009

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Q I am interested in buying a property that is on the market for Pounds 185,000. The estate agent has suggested that I offer Pounds 175,000, with an additional Pounds 10,000 for fixtures and fittings to save stamp duty. My solicitor says I cannot do this. Who is correct?

A The sale of chattels, which are moveable items and therefore not fixtures, does not attract stamp duty. Fixtures are such things as fitted wardrobes. Paying for fixtures and fittings separately is common practice where the value of the property or land and the chattels is just above one of the stamp duty thresholds, such as in your case. The value of any chattels must not be over-inflated as this may amount to a fraud on HM Revenue & Customs, for which you and your solicitor could face criminal charges and any deal you struck in an attempt to cheat the taxman would be unenforceable.

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Extract

Getting Your Chattels in a Twist ; Our Lawyer Answers Your Questions

The seller should provide a Form TA10, which is the fittings and contents form, and it is good practice for a copy of this to be attached...

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