We've always made it clear that we think that the current rash of Stamp Duty Land Tax savings schemes are risky for buyers. The problem for us, is that even though they are not illegal, it is the client that is bearing all the risk, and the firms that are charging them 50% of the savings have nothing to worry about.
Although the government cracked down on many of these schemes in the budget there are still a number around and people are still being tempted into using them.
Our question is straightforward - if they are so straightforward, why do companies sell indemnity insurance policies to cover them? Also, given that those policies typically only last for 9 months - what about the remaining 6 years that Revenue & Customs have to pursue these claims?
Just for clarity - if anyone was in any doubt that the revenue is pursuing these cases, maybe this Revenue and Customs link will make it clear.
This is obviously quite a formidable warning, and buyers should also be aware that in the future, Revenue & Customs could encourage new legislation that could potential make this a fraudulent transaction. This could be introduced retrospectively as well.
We will continue to urge caution amongst buyers thinking that this is a straightforward money-saving scheme.
Anyone thinking of using them, must be sure that they keep the money saved in a bank account ... just in case.
