stamp duty query

mcmurphy

hi all

i should know this really but i'm finding myself stumped. i'm trying to work out whether stamp duty would be payable in the following circumstances.

Property is currently owned by 4 people, 25% share each.
One party wishes to buy out the other 3 parties.
Overall property value approx 150k, therefore each party owns £37,500 share.
Buyer needs to buy £112,500 share of property.

Is stamp duty payable, bearing in mind stamp duty not payable below £125,000 and the party already owns £37,500 of a £150,000 property?

Hope that makes sense. Would prefer answer from someone who knows for sure, rather than speculation (although feel free to comment of course )

nmiah786

mcmurphy wrote:

hi all

i should know this really but i'm finding myself stumped. i'm trying to work out whether stamp duty would be payable in the following circumstances.

Property is currently owned by 4 people, 25% share each.
One party wishes to buy out the other 3 parties.
Overall property value approx 150k, therefore each party owns £37,500 share.
Buyer needs to buy £112,500 share of property.

Is stamp duty payable, bearing in mind stamp duty not payable below £125,000 and the party already owns £37,500 of a £150,000 property?

Hope that makes sense. Would prefer answer from someone who knows for sure, rather than speculation (although feel free to comment of course )

One of my relative is currently doing just that and the solicitor confirmed that no further stamp duty was due. All four members were mother, father and two sons. Dont know if that makes any difference.

Your best bet is to get them to ask the solicitor who is doing the equity transfer.

HTH

mcmurphy

thanks for that. i contacted the inland revenue who confirmed that the stamp duty is only payable if they are buying more than a £125,000 share. circumstances are slightly different if any mortgage is secured against the property.