Stamp Duty Planning - Property into a Trust
Upon exchange of contracts on a residential property, is it possible to immediately put that property into a trust with a small deposit (normally very small %), pay the balance to the Vendor from the mortgage taken out/deposit paid. Once the Vendor has been paid, the first trust enters into an agreement with second trust whereby the first trust assigns to second trust it’s right to buy the property at full market value over a long period of time? Apparently this saves Stamp Duty upon completion.
I know that if chattels are valued separately then the threshold at which SD gets charged gets reduced & therefore the next band can be avoided.
Has anyone heard of such scheme?
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