Once again, the old adage has proved itself to be true.
"If it looks too good to be true, then it probably is".
Over the past couple of years, we have been approached by a number of companies trying to convince us of the merits of Stamp Duty Land Tax savings schemes. The idea is that there is a loophole in the law that "cannot be closed" according to one supplier that tried to convince us to work with him.
There are a number of variations on a theme, but fundamentally, the concept is that if you are buying a property, there are various schemes available to you that will enable you to legally avoid paying Stamp Duty Land Tax.
These schemes often involve sub-selling or buying through another company, so avoiding the tax that is normally due.
We have been extremely concerned about these schemes, not because it would cause us problems, but that our clients could suffer the consequences of when HMRC (formerly the Inland Revenue) finally catches up with those that have used them.
That's why we were very pleased to learn to read the lastest release from HMRC that explains their position, and that they are investigating instructions where they suspect such tactics were used.
This guidance note can be downloaded here which explains how HMRC view such schemes.
