How is it in the UK that builders can offer a home for sale with "stamp duty paid"?

Question

How is it in the UK that builders can offer a home for sale with "stamp duty paid"? Do they actually pay it or is there some loophole in the law that lets them avoid it?

Answer 1

They pay it for you but they probably add it to the price of the house, so they don't lose out.  But they wouldn't be able to do it if it made the house too expensive because your mortgage lender (assuming you are getting a mortgage) has to value your house before they will lend you the money and it has to be valued at the current market price or they will not lend you the money for it.

Answer 2

Nothing clever there s they just increase the house price to cover the amount and then pay it on your behalf. Same when shops say goods sold free of VAT.

Answer 3

People think they're getting something for nothing when of course, in actual fact it's included in the selling price.

Answer 4

They pay the stamp duty on behalf of their buyers. This their gimmick to persuade people to buy their houses.

Answer 5

Its actually in the price of the house, so they are not actually paying at all. You are!

Answer 6

they pay it on your behalf, but add it to the total price. Its a gimmick and doesnt really help you out at all!

Answer 7

This is a clever ploy used by builders to encourage people to buy their properties.  Sounds like you are getting something for free.  Wrong!  The building company more than likely add the cost of the stamp duty onto the purchase price so buyers think they are just paying for the property alone, whereas in reality, the price of the house includes the stamp duty fee.  One way of finding out whether they are doing this is to get an independent valuation done on the property.