Purchases of both Residential and Commercial properties as well as land acquisition are subjected to a tax known as the Stamp Duty Land Tax. This tax is applicable to any purchase above £250,000. This can place a huge financial burden in the transaction of any purchases of these types and hence making it even more expensive. There is, however, a loophole in the law whereby this tax can be reduced legally. It is called the Stamp Duty Mitigation. Up to 100% of the stamp duty tax can be mitigated using this scheme. The HMRC has also announced a complete tax duty land tax relief for zero carbon houses no matter what their purchase value is. This has been done in order to encourage the kick start of the market for zero carbon houses and also raise awareness amongst the public about the benefits of living in a carbon neutral house.
Who Can Help?
Specialist solicitors will normally help in finding out how you can avoid this huge tax on any of your residential or commercial purchases. This can lessen the financial burden and huge savings can be made depending on the value of the property and other independent factors. Most solicitors are specialised and provide one free consultation to help the client choose the best strategy depending on the type of purchases made (Residential, Commercial or Land).
How to Choose a Good Plan?
The general things to consider before considering going with a scheme in order to mitigate the Stamp Duty Tax:
1. The scheme should have been running for a substantial period of time with a proven track record.
2. It must comply with all the requirements of the HM Revenue & Custom (HMRC) for Tax planning.
3. The scheme offers substantial savings .
4. All fees are fully refunded in case the HMRC successfully challenge the scheme.
5. The scheme is low risk and non aggressive.
These are the main things to consider whilst entering any scheme with a solicitor that claims to be a specialist in this kind of scheme.
This scheme (Stamp Duty Mitigation) is completely legal and can help reduce the financial burden of many buyers. However, a word of caution is to be noted. Whilst tax avoidance is completely legal, tax evasion is a completely different matter and is illegal and punishable by law. It is best in most situations to have legal advice by specialist tax solicitors to make the most of the Stamp Duty Mitigation Scheme.