Whilst researching a point about SDLT on the internet, I came across several scheme providers who claim that they can avoid SDLT on expensive properties. They claim of course, that it all works, HMRC know about it etc etc.
Does anyone have any idea how these "schemes" work?
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Yes
They work by persuading a sucker to part with fees for 'schemes' which - 10 years down the line will be criticised and fail at the Supreme Court. There are some loopholes that still remain in SDLT but the schemes are usually based on variations of sub-sale relief, which Stamps Office never understood - have a look at Vardy Properties Ltd v HMRC for a recent example of the type - http://www.financeandtaxtribunals.gov.uk/Aspx/view.aspx?id=6706
Of course what the government have never grasped is that by increasing SDLT to current ludicrous levels (it was Gordon's favourite Stealth tax and now it's George's) it increases avoidance activity.