Sale of residential property

Split between moveables and property

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If an individual sells a residential property (not main residence) and the sale agreement does not make mention of any allocation of the sale proceeds to moveables (furniture, white goods curtains etc), can an estimate of their value be made by the seller when reporting the gain to HMRC and exclude such value from the proceeds used in the CGT calculation? 

The impact to the seller of an allocation of proceeds to moveables is a reduction in the proceeds chargeable to CGT.  Can the purchaser independently of the seller also make an allocation where the impact to the purchaser would be a reduction in SDLT/LBTT but a reduced CGT cost for a future sale of the heritable property?  If the purchaser does not make an allocation and the full purchase consideration is reported on SDLT/LBTT return will this create a problem for the seller if they have made an allocation?

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By Paul Crowley
06th Dec 2021 15:20

In the old days people had two contracts when getting just over the Stamp Duty threshold
You really should get buyer to agree any allocation
We do keep trying to get the legal people to get values sorted on business sales
Goodwill
Fixed assets
Property
Stock

One mans fridge is another mans skip filler

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Replying to Paul Crowley:
paddle steamer
By DJKL
06th Dec 2021 16:02

Not even a skip filler, these days you have to pay someone to take it away and park it in a field in Fife

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Replying to DJKL:
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By Hugo Fair
06th Dec 2021 17:51

Oh, you found it then?
When they told me it was going to a foreign recycling centre ...

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By Hugo Fair
06th Dec 2021 18:01

Certainly the sale price (and any split) must be consistent for both SDLT and eventual CGT (buyer's perspective) - and should be agreed with vendor (so that one lot of figures appear in all associated paperwork).
Expect any material value placed on 'moveables' to come under heavy scrutiny (the real value of 2nd-hand goods, as per above comments, seldom requires many fingers for the counting process!)

In my experience, the only time it makes any sense to consider a split is when the property sale is fractionally above an SDLT threshold - or those rare cases where there's a truly expensive item being 'thrown-in' like a cabin cruiser or whatever.

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