What are chattels? To put it simply, they are personal possessions you can take with you when you move, unlike fixtures, which usually stay with the property. In this guide, we’ll explain the key differences and share tips for incorporating personal items when buying or selling a home. Knowing what’s included in a property price can save you money when moving.
Key Takeaways:
- 1. Chattels differ from fixtures because they are not attached to the property, and are therefore not included in Stamp Duty Land Tax.
- 2. You can negotiate including chattels in the price of a home.
- 3. Follow our top tips to ensure you are clear about what’s included in a property transaction.
What are chattels?
Think of a chattel as a personal item– essentially anything you own which is not fixed to your property and can be taken with you should you move. Chattels are not included in Stamp Duty Land Tax (SDLT).
For Example, anything movable in your property: furniture like your favourite armchair, sofa, painting, house plant, rugs or curtains.
How do chattels differ from fixtures?
A fixture is an item that is attached to a property. Removing it would cause damage or require more effort than just picking it up. As such, fixtures are legally treated as part of the property in a sale, passed on to new owners, and aren’t exempt from SDLT costs like chattels are.
For Example, kitchen units, built-in wardrobes, bathroom suites, light fittings.
Quick Comparison: Chattels vs Fixtures
Not sure whether something is a chattel or a fixture?
Some items fall into more of a ‘grey area’. Cabling, or light bulbs, are not technically fixed to a property, but you would assume these wouldn’t be removed from the property. If you are unsure, consider the following:
1. Degree of attachment:
- How firmly is it attached? If the answer is secure, it’s a fixture.
- Does it require damage to remove? If so, it is a fixture.
2. Purpose of attachment:
- Is it meant to be a permanent improvement to the property? If so, it is a fixture.
- Is it an item to be enjoyed on its own? If so, it is usually a chattel.
If you are still unclear about the classification of a particular item, you can check if it is listed on your TA10 form, which outlines everything included or excluded in the sale price.
How can chattels help you save money when you move?
As a buyer
Because chattels aren’t subject to Stamp Duty Land Tax (SDLT), you can agree on a separate price for specific items you’d like to buy from the seller, things like furniture, curtains, or garden equipment, without increasing your tax bill.
Let your conveyancer know as soon as possible if there are chattels you’d like included in the deal. They’ll make sure everything is listed clearly in the contract, so the price is fair and there’s no confusion later on.
You should always be cautious when including the price of chattels in your offer, especially if the aim is to reduce the amount of stamp duty to pay. You should always document the chattels included. And, the price you pay for them must always be fair and reasonable – you can’t overvalue them so you can pay less stamp duty. Click here to read more about this below.
As a seller
If you own items that could add value or appeal to your property, you can discuss leaving them for the buyer as part of the sale. For example, maybe you’ve invested in high-quality curtains that perfectly fit the windows but won’t work in your new home.
With the buyer’s agreement, you can include these in the deal and agree on a fair price for them – you can’t overcharge or your buyer may run into issues with stamp duty. Your conveyancer can make sure these items are clearly listed in the contract, so there’s no confusion about what’s staying, what’s going, and how much is being paid.
If you’re looking for more in-depth information about the conveyancing process for either buyers or sellers, download one of our free guides:
Top Tips for selling items with your property
- 1. Create a detailed list of the items you wish to include
- 2. Research similar items being sold second-hand, so that you have supporting evidence for the prices. The price must be reasonable, so you can’t attempt to add £1 million to the house price if it includes some nice curtains!
- 3. If an item is particularly valuable, such as an antique or painting, consider getting a professional valuation to make sure the price stays fair
- 4. Make sure the buyer agrees with the items and prices
- 5. Seek advice from a conveyancer
As a buyer who is looking to buy items from a seller, follow the same tips to ensure you have an agreement with the seller!
What happens if I over-value the chattels?
It may be tempting to over-value the chattels, so sellers can be paid more and the buyer can save money on stamp duty. For example, you could say that a second-hand sofa is worth £3000 and this price is included in the buyer’s offer. As stamp duty isn’t paid on the price of chattels, this reduces the value of the property that stamp duty must be paid on by £3000.
However, if the second-hand sofa is really only worth £300, and is being over-valued for this purpose, this counts as fraud – a criminal offence. HMRC have the right to investigate how much stamp duty has been paid and why. If they find that chattels are being over-valued to reduce the amount of tax paid, you may face criminal charges.
This is why chattels should never be sold at inflated prices. You should always have evidence for the fair market value of any chattels, such as similar item listings on auction and marketplace sites like eBay, Gumtree, or Facebook Marketplace. You should also take photos of all the chattels included in the price, so you have evidence they exist and were purchased by the buyer.
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Why you should speak to a conveyancer about chattels
Talking to a conveyancer early on can save you time, money and stress. They’ll make sure you know exactly which chattels are included in the sale price, so there are no grey areas. Clear agreements mean less chance for any future disputes. That way, you won’t turn up on moving day to find any nasty surprises- like a house with no lights! Your conveyancer will make sure you know what’s staying, what’s going, and that it’s all in writing.
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