Professor Property Advice
Is it possible to avoid stamp duty? For example if someone was selling a property to a family member with no chain or mortgage involved, the house, originally bought for 170k and is now valued at 180k but was sold for 100K, avoiding stamp duty. The rest of the valued amount was sorted out privately. Would this be illegal? If so what would be the consequences? Does this happen regularly and can you realistically get away with it? Also if you are renting a room in your property to a friend do you have to pay tax on the rent if it is just contributing to pay the mortgage?
Bad news on both fronts I am afraid. As I understand it, the ideas you have suggested are tax evasion, and if you were caught could face prosecution. Yes, I believe all rental income is taxable. But to be clear on both counts I’d suggest talking to the Customs & Excise and the Inland Revenue respectively (although I think they may recently have merged).
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