A
There has been a lot of discussion about this following on from the change in the stamping regime in December of last year. However there has been no change on this point. Stamp duty is payable on the purchase price of the property. This figure must include any sum paid for fixtures and fittings. There is however scope for excluding any sum paid for chattels. Unfortunately there is no legal definition of what is or is not a chattel or a fixture. As a general rule of thumb a chattel is anything that is capable of passing by delivery. Usually it is clear that items such as curtains carpets certain white goods etc are chattels. If it is clearly not a chattel, it is probably a fixture. Items such as central heating systems, fitted kitchen/bedroom units, light fittings (but not the shades) etc are clearly fixtures. As a general rule an item is deemed a fixture if it is fixed to the property and its removal would damage, in any way, the fabric of the property.
Therefore it is quite legitimate to set a separate price for chattels but the price must reflect correctly the value of the goods in question. If the goods are second hand then it must be the second hand value.
This point is important where transactions are at the thresholds where the stamp duty percentage increases. If the purchase price is £250,000 or less then stamp duty land tax is payable at 1% of the purchase price except where the price is less than ¬£60,000 where there is no stamp duty land tax payable. Properties priced at £250,001 to £500,000 have to pay stamp duty land tax at 3% of the purchase price. Any purchase price over £500,000 stamp duty land tax is payable at 4% of the purchase price. There is a substantial difference between stamp duty payable at 1% and 3% so a splitting of the purchase price and chattels can be very important on properties at the point of which the stamp duty land tax payment increases. It is in order if the items are genuine chattels and the figure allocated to them correctly reflects the value of the items in question.
Stamp duty land tax is payable by the purchaser. The purchaser now has to complete a type of tax return with details of the transaction which is submitted to the Inland Revenue including the first named purchaser's National Insurance Number. The Inland Revenue have already indicated that they will be scrutinizing the returns particularly for those transactions at the threshold of the changes of the percentage. If your return is picked out by the Revenue and an incorrect figure has been allowed for chattels or the items are in fact fittings and not chattels at all then the Inland Revenue can demand payment of Stamp Duty Land Tax at the higher percentage.