Stamp duty land tax was one of the issues the Chancellor George Osborne focused on most when he revealed the Budget in March, with a new top rate of seven per cent introduced and measures announced to ensure people pay their fair share.
That does not mean, however, that stamp duty mitigation is something that you should not explore.
What the Budget does show is the need to choose the right company to put together a credible scheme.
Many stamp duty planning firms operate in the UK, however, some are more reputable and successful than others.
When choosing a mitigation firm, the first thing you should look for is how successful their schemes have been in the past.
It is of the utmost importance that the firm is able to demonstrate a strong track record of success to show that their schemes are up to standard and instil confidence that they can help you save money.
On the same point, you should ask who will be providing the plan – the company themselves or will it be passed to another provider under a specific agreement.
You also need to ask the provider how much they are likely to save you. While it will be difficult for them to give you an exact figure, stamp duty planning should provide you with a worthwhile saving.
The very best schemes can save you the full amount of stamp duty land tax.
It is also vital that the company’s plans are not seen by HMRC as being aggressive.
Revenue and Customs can and will investigate those it believes are using aggressive tactics to reduce their bill or avoid paying stamp duty altogether.
If a company has had its schemes investigated by HMRC in the past, they should be able to demonstrate a 100 per cent record of defending them.
Different stamp duty mitigation firms have different schemes in place to help consumers and businesses and it is vital that the plan they present to you will not impact on your ability to secure a mortgage in the future.
The very best firms have their plans reviewed by top tax QCs who scrutinise them carefully to look for any holes that could scupper your chances of making a saving.
Most companies will not carry a scheme forward unless it has been given the green light by an experienced tax expert and it is important that the firm you choose employs such quality control measures.
With the stamp duty land tax holiday for first-time buyers coming to an end and a new seven per cent rate of tax introduced for homes costing above £2 million, the government is intent on making sure everyone pays the right amount of tax.
However, stamp duty mitigation schemes do not contravene the law and some firms submit their schemes to HM Revenue and Customs on a regular basis.
This transparency is something you should look out for when choosing a stamp duty mitigation firm to help you.
In these difficult economic times, saving several thousands of pounds is an appealing prospect.
While there is no guarantee that a stamp duty mitigation firm can reduce your bill or help you avoid the tax altogether, many companies can point to a track record of success and if they have helped others then there is always a chance that they can help you as well.
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