Stamp Duty UK

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Stamp Duty Mitigation Fees

28 September 2011

When you are planning to purchase property in the UK, it is important to begin considering tax planning options so that you don't pay any more tax than is necessary. There are plenty of companies in the UK specialising in these services. The fees they charge are significantly less than what you would pay in Stamp Duty, with most Stamp Duty UK mitigation fees running at about 50% of the savings. Ultimately the fees are a saving over the amount of tax you would otherwise have to pay, so the end-customer is in a better financial situation from having received the service.

Typical Fixed Rate Fees Examples

If you wanted to purchase a property at a price of £2,000,000, you would have to pay a Stamp Duty of £100,000, which is 5%. On the other hand, most Stamp Duty specialists, if they are able to find a way to completely eliminate this tax liability, would charge you about £50,000 in Stamp Duty mitigation fees. Thus, you would save £50,000 in this scenario. This is a substantial amount of money that you could be putting to much better use on your new home.

If you wanted to purchase a property at a price of £750,000, you would have to pay a Stamp Duty of £30,000, which is 4% of £750,000. On the other hand, most Stamp Duty specialists, if they are able to find a way to completely eliminate this Stamp Duty, would charge you about £15,000 in professional fees. Thus, you would save £15,000 in this scenario. Again, this is a significant saving.

Fee Plus Fixed Rate Stamp Duty UK Mitigation Fees Examples

It is important to note that some companies charge you a base fee plus a fixed rate Stamp Duty UK mitigation fee. In this scenario, you have a set Stamp Duty mitigation fee plus a percentage of the savings. This typically results in you paying more compensation for the Stamp Duty mitigation advice on inexpensive properties and paying less compensation on very expensive properties.

So for a comparison example, let's look at what Stamp Duty UK mitigation fees you would pay from Company 1, which charges a fixed rate of 30% of Stamp Duty UK savings on top of a fixed fee of £4,000 per property purchase, as opposed to Company 2, which charges a fixed rate of 50% of Stamp Duty UK savings with no additional fees.

In our first scenario, let's say you want to purchase a £300,000 property, which would have a Stamp Duty UK of £9,000. Company 1 charges £6,700, or £4,000 plus £2,700. Company 2 charges £4,500, or 50%. This shows that you would pay £2,200 extra to Company 1 for Stamp Duty UK tax planning advice.

In our second scenario, let's say you want to purchase a £1,000,000 property, which would have a Stamp Duty of £50,000. Company 1 charges £19,000, or £4,000 plus £15,000. Company 2 charges £25,000, or 50%. This shows that you would pay £6,000 extra to Company B for Stamp Duty UK services.

While considering Stamp Duty UK fees based on the value of the property you wish to purchase will impact how much you pay in fees, in all of these examples the professional service saved you a significant amount of money.

Stamp Duty Mitigation In The UK

19 September 2011

If you live in England or Wales and you are purchasing a property of over £250,000, stamp duty land tax (SDLT) mitigation planning can help you save a lot of money or avoid SDLT altogether. For buyers purchasing property of £1,000,000 or more, they can likely save over £20,000 by avoiding stamp duty, and even for a £350,000 property, buyers can generally save well over £5,000.

The real secret of SDLT mitigation is hiring an expert who can work within the current tax laws to save you a substantial amount of money of your purchase of a home or business property. Tax experts know the specific criteria and techniques to avoid the stamp duty UK tax and they can help you steer clear of some of the more shady ways people try to save money on the purchase of property.

Some property buyers are under the impression that they need an offshore company to avoid the stamp duty UK tax, but that it incorrect. A variety of techniques can help reduce or eliminate the liability and the majority of them will not impact to purchase process or timetable. The purchase is still registered with the land registry normally and the tax planning process is fully disclosed to HMRC. SDLT Mitigation is compliant with the guidelines established by the council or mortgage lenders and operates well within the law.

Stamp Duty UK Mitigation is 100% legal when done correctly. A tax advisor is knowledgeable about and works within the current UK law. Most conveyancers are not generally not educated about the specifics of Stamp Duty UK tax and they will therefore not present this strategy as an option to property buyers because helping people avoid stamp duty is beyond their abilities. In order to avoid SDLT and save as much money as possible on your next property purchase, contact a professional stamp duty UK tax advisor today.

We recommend that is you are purchasing land or property in England or Wales for £250,000 or more to complete our Stamp Duty UK online form and speak with a professionally qualified tax adviser.

Avoid Stamp Duty in the UK

18 September 2011

Taxes seem to be waiting around every corner. UK Stamp duty (SDLT or Stamp Duty Land Tax) is perhaps one of the most expensive lump sum taxes you will have to pay in your life. Paying SDLT is a rare occurrence for most since the stamp duty land tax is only payable during the home buying process. Since it is not a very common tax to pay, most people won't think about stamp duty obligations until they are about to sign their mortgage. In these cases, buyers often get a rude wake up call. Many people realise very late in the purchasing process how expensive Stamp Duty is.

Luckily, you can avoid paying thousands of pounds without facing legal action. Legally avoiding stamp duty can be done through a process known as stamp duty UK mitigation. You will need to ask for the help of tax planning experts in order to successfully bypass having to pay SDLT. After all, there is a lot of work involved, and you will need to find an expert who has a lot of knowledge about the stamp duty UK tax system in order to get the best results.

Some of the knowledge is common sense for those who are slightly familiar with the local tax system. Other titbits, such as the fact that zero emission homes can be SDLT-free, are not common knowledge. Hiring a tax planner who is up to date on the law is extremely important for those who want to avoid stamp duty.

Stamp duty mitigation is done by combining a wide variety of different planning tax methods to significantly decrease the liability you have to pay. In some cases, the liability can be completely waved. Though it may sound weird to invest money into stamp duty avoidance, this process normally saves you thousands of pounds. That's a lot of money that could be in your pocket, or putting towards that new kitchen and bathroom!

Most companies and consultants that offer SDLT mitigation services don't charge a flat fee. They normally will charge a fee that increases with the amount of stamp duty saved. This gives them every incentive to help you avoid stamp duty UK costs, and also shows people that they got what they paid for. However, you may have to pay a fixed fee in addition to stamp duty avoidance payments with some companies. Companies might also offer special investigation insurance and guarantees relating to stamp duty UK mitigation for an additional cost.

Future homeowners with a mortgage that is under 250,000 GBP in price might not actually benefit too much from stamp duty mitigation. Many companies may not even offer Stamp Duty UK mitigation services for homes under 250,000 GBP in price. The benefits of using qualified tax planners' services are really apparent when you are purchasing a home that is worth 500,000 GBP or over. If you are a millionaire looking for a new home, avoiding SDLT is a must. Hiring a good tax planner for SDLT mitigation if you are buying a home over 1,000,000 GBP is an absolute must - it can save you tens of thousands of pounds.

Stamp duty UK mitigation is 100% legal, it's a good way to avoid unnecessary taxation, and it's also a good way to keep that beautiful home purchase within reach. For many home buyers SDLT avoidance is simply a must.

Stamp Duty UK is working with leading tax experts, so if you are in the home buying process and are looking to save money don't hesitate and fill in our contact form now.

Save Money With SDLT Mitigation

18 September 2011

Stamp Duty UK Mitigation is a completely legal technique applied by a qualified tax accountant that will help you save money on Stamp Duty when closing the deal on your property. The laws have surrounding the payment of Stamp Duty UK have changed since 2008, so many more people now qualify, provided you have not yet purchased your property. Since these laws are complex and ever-changing, your regular conveyancer probably will not be able to help with these specialized tax strategies. This is why we always recommend that you speak with a professional tax planner who will be aware of the latest laws.

If you have not yet bought your property and will be investing more than £250,000, you could save several thousand pounds by applying a Stamp Duty UK mitigation strategy. If your property is worth over £500,000, the savings could be even more. For example, you could save over £22,000 on a £1,000,000 purchase alone - that's enough to pay for a new conservatory or even an outside swimming pool! These savings are available to individuals, limited companies, and partnerships for the purchase of residential or commercial properties in England and Wales. Sadly, it is not possible to apply this tax saving to properties or land in Scotland, due to differences in law. These techniques are 100% legal and recognized by mortgage lenders, being fully reported as a normal purchase with the land registry and to HMRC. Most mortgage companies can work with these strategies and are already aware of the strategies involved.

Stamp Duty UK can help you with SDLT mitigation, so don't wait, fill in our contact form today and we'll put you in touch with a qualified tax accountant who can save you thousands of pounds.

Stamp Duty Land Tax Mitigation in the UK

17 September 2011

Many people in the UK are struggling just to make ends meet with the current recession, which means that purchasing property is just that much further out of reach. Fortunately, if you are in a position to purchase property or land there are legal ways to avoid stamp duty which can help buyers save a lot of money - just at the point you need to!

What many people do not realize when they are comparing the prices of properties is the stamp duty tax may be different from one location to the next. Generally, the SDLT (the Stamp Duty UK Land Tax) applies to all property and land purchases in Wales and England. SDLT is calculated based upon the purchase price of the property, with higher percentages for higher priced properties.

Luckily, stamp duty UK avoidance is possible and it is referred to as SDLT mitigation. Tax experts in the UK can help people avoid SDLT by reducing it or sometimes even eliminating the stamp duty liability completely. This can help property buyers save thousands of pounds.

In 2007, the government introduced a plan to help people avoid stamp duty if the new property has 0% carbon emissions. This path to exempt stamp duty on so-called "green homes" is part of a larger plan to promote eco-friendly living in the UK. A tax expert can also help people with other stamp duty UK avoidance tactics for those folks who qualify.

Generally speaking a tax adviser will charge their clients based on the amount of money they help the person save. Each company varies when it comes to their fees but most of the time it is around 50% of the total amount of stamp duty that has been saved. Sometimes additional fees are also charged - it entirely depends on the case at hand. For people considering stamp duty UK mitigation, it is important to verify that the methods you are using for SDLT avoidance are legal and sound or that the tax accountant has experience in this field. At Stamp Duty UK we only use qualified partner companies to ensure that the advice and strategy you receive is compliant and 100% legal.

Whether or not stamp duty UK avoidance is a valid option for a buyer is based on a number of factors including the price of the property they are going to purchase. For properties worth more than 500,000 pounds, and especially properties worth over 1 million pounds, stamp duty UK avoidance can help save buyers substantial amounts of money.

A professional SDLT Mitigation expert can help you determine if you can avoid stamp duty. Stamp duty avoidance may be able to save you thousands of pounds on your purchase of property. Find out more today with Stamp Duty UK by completing our online form and speaking with an expert.