From: Lobster 
Newsgroups: uk.finance
Subject: Re: House buying question
Date: Tue, 04 Jul 2006 16:33:38 GMT

Simon Finnigan wrote:

> I`m currently looking to buy a house that has been valued at £150,000.  The 
> seller (a family member) wants to reduce the cost to me to £120,000. 
> Obviously the seller can charge what they want for the house, but the main 
> question I have is regarding the stamp duty side of things - if the house is 
> just sold at £120,000, is stamp duty payable?  If the current owner sells it 
> to me for £150,000 with a £30,000 "gift", would stamp duty be payable?  I`d 
> much rather not pay the stamp duty if it is at all possible to avoid it by 
> arranging things in a particular way.

IANAL but I'm pretty sure that arrangement would be considered by the 
Revenue to be the tax-evasion that it is.

David