Conveyancing is the legal process associated with buying and selling of property. The sale of the property alone is only one aspect of the process. It also includes an in-depth evaluation of the land, buildings and appliances to assess and determine their true value. This article explains how the value of fittings and other contents in a residential property are determined.
Value of fittings
In the process of conveyancing a residential property, the seller almost always leaves some of his belongings behind to be sold with the property. It may range from carpet and curtains to light fittings and major white goods. The real issue crops up when the value of these goods have to be determined. At times, the value of these assets (after deducting depreciation) is calculated and the sum will be added to the purchase price. But, the buyer will end up paying Stamp duty Land Tax (SDLT) for these items too. This is definitely an additional burden for the purchaser.
Adjusting the purchase price
You can save money by being a little conscious in this matter. And enlisting the services of a skilled conveyancer to help you tide over this situation, there is a perfect method to deal with the fixtures and contents in a residential property
- Attribute the real value of the contents that is to remain in the property.
- Adjust the purchase price in such a way that the sum of all the goods and assets within the property are accounted for in the final sum.
- Show both the amounts separately in the contract.
Pay taxes
At the time of completion, you are supposed to pay taxes to the Inland Revenue. At the time of submitting the SDLT form, show only the purchase price of the property. So, you will have to pay the SDLT for that amount only. You will not have to make payments for the fittings and contents. This will make a considerable difference in the amount that is paid.
Exempt SDLT thresholds
There are many SDLT thresholds such as £125,000, £250,000, £500,000 and £1million. The right attribution of the cost of fittings can help you make large savings. That is, larger sums can be attributed to fixtures and fittings. Deducting this from the original purchase price will save you from the upper tax slabs and help you same money.
Sum attributed to fixtures
People are skeptical about the amount of money that can be attributed to fittings in the house. Any sum is justifiable, provided you are not pulled up for fraudulent practice by the HMRC.
When you give a value to an item, make it a point to check its condition and age.
For instance, if it is a worn out carpet or torn curtain, you can’t claim large amounts. On the other hand, if it is a newly replaced fitting, you can claim a value almost equal to the cost.
Phew! Conveyancing to help you
But, attributing the value perfectly and getting it exempted from a higher SDLT threshold is not a simple task. Hence, you will need the help of a good conveyancing solicitor. At Phew Conveyancing, you can seek the advice of expert solicitors. These licensed conveyancers will give you advice on all matters associated with conveyancing. This will, in turn, reduce your stress and improve your profits in the transaction.
