Paying Buyers Stamp Duty – offset against CGT

by Readers Question

13:38 PM, 7th September 2016
About 2 years ago

Paying Buyers Stamp Duty – offset against CGT

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Paying Buyers Stamp Duty – offset against CGT

A 3 bed Semi for £60,000, 11% yield I would have thought it would be easy to sell but alas no.price

I have found Middlesbrough and the North East in general challenging.

Hence I have offered to pay the buyers stamp duty. I presume I would be able to offset this additional cost against my CGT bill. But would anyone (most importantly HMRC!) disagree?

Many thanks

Mark



Comments

Neil Patterson

13:42 PM, 7th September 2016
About 2 years ago

Hi Mark,

To entice a buyer you would just reduce the purchase price, which is in effect what you are saying.

The Purchase Price is registered by solicitors as the amount the buyer hands over to complete the transaction.

Mark Bruce

18:14 PM, 7th September 2016
About 2 years ago

Paying the stamp duty would enable the buyer to free up cash. For example:-

I pay the Stamp Duty
Purchase Price £60,000
75% mortgage £45,000
No Stamp Duty (saving £1,800)
Deposit needed £15,000 to buy

The buyer pays but the price reduced by the same stamp duty
Purchase Price £58,200
75% Mortgage £43,650
Stamp Duty £1,800
Deposit needed £16,350

Therefore the landlord frees up £1350 by getting myself to pay the stamp duty.

But will HMRC see myself paying their stamp duty as an allowable cost against my CGT bill?


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