MattW

Can anyone tell me for certain whether stamp duty is payable on builder fitted extras such as:

Appliances
Bath, where bath is an upgrade
Tiling, where normally there would be no tiling
Carpets
Light fittings

etc

Thanks in advance
Matt

Brendan Hughes

I can't help, but I wonder if the rules about fixtures and fittings apply.

fast bloke

You pay a purchase price which includes a PC sum. You pay stamp duty on the purchase price including this sum. If you overspend on the PC sum (which is basically what you are doing with bath upgrade and light fittings) you do not pay stamp duty on the difference. You should pay the builder directly to keep it simple. You or the builder can reclaim VAT on the bath, tiling and light fittings, but not on the appliances or carpets

MattW

"PC Sum" FB?

fast bloke

Did you get to choose your own kitchen/bathroom/fireplace/tiles etc. If so the builders usually include in a PC Sum (provisional cost) into the price. They might allow you a PC sum of 10k. (Might be 1k, might be 40k) You go and choose all the stuff you want and the builder pays the supplier to first 10k. If you spend less than 10k you lose the rest, if you spend more you pay the builder directly

MattW

Not as such.

For things like the bathrooms, there is obviously a bath, wc and toilet fitted as standard. We've upgraded those, added nicer taps and such like.

In the living areas we have added downlighters, and deleted roses.

In the kitchen, you get a standard layout and you can upgrade to various other layouts which have better carcasses etc. We've added floor tiling as otherwise you get concrete

Carpets are offered at retail cost, we could go to Carpetright if we choose.

So if I understand you, as we have no PC cost, that is effectively included in the charge for the house. So we pay 3% on that. The builder charges his costs VAT free (where applicable) anything we do post completion is subject to VAT as any normal homeowner.

P1-Brad

My understanding (from a couple of new build purchases) is that yoo pay Stamp Duty on the purchase price, i.e. the amount on the transfer deed. If you want the upgrades to not be included these need to be paid for separately. We made a number of upgrades for which we paid a 10% deposit, the rest was included in the completion statement but NOT as part of the puurchase price, which was the original house price.

Hope that helps.

fast bloke

Pretty much - You can claim back VAT on other bits and pieces after completion. (I think you have 3 months). There is no absolute list, but stuff like paint, curtain poles, wooden floors etc can be claimed back. The define it as anything which is integral to the fabric of the house. Keep receipts for everything you spend to finish the house. Try and claim for it all. The VAT office will decide what you can and can't reclaim. (I thought that as they included curtain poles they should include a plasma TV, which is fitted in a similar fashion to the poles - it seems not, but they did give me the VAT back on the bracket )

MattW

Interesting stuff, will give it a go. just saved myself £500 already

Thanks FB and P1-Brad

Phil

In theroy you can purchase the land and pay stampduty on that and then instruct a builder to build a house for you without incurring stampduty on the building work

Works ok if you have cash to build and are not tied down to a big mortgage

fast bloke

Did I mention my fees?