Buying a flat or house question:
A couple of methods of getting around SDLT have been suggested to me by companies that then split the benefit 50:50. They claim to be using schemes registered with the tax office. One method is via unlimited companies and another involves changing the ownership split 99:1% then 50:50%. What are the risks if I do this?
Responses:
Derek Payne's response
On a general basis, the main thing these schemes have in common is that they rely on the Inland Revenue (IR) not querying the return within 9 months and 30 days of the return being filed. This is how long IR have within which to raise a query on the validity. If they do not with this time frame, they loose the opportunity to object, and you have saved on the SDLT.
If IR do raise an objection within the time frame, the main risk is they could charge penalty interest and fines for late paymnet of the full SDLT. So you so could end up paying the full SDLT plus interest and fines. Unless you have put money aside to cover this eventuality you could be in trouble.
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