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can I sell house to daughter for less than value?
Comments
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LittleMissGiggles123 wrote: »I thought there was no stampy duty on a house of this value anyway. Or has that changed yet again?
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Yes, there is no SD on properties under £125k, but the figures the OP were just estimates.0 -
Quote:
Originally Posted by SuzieSue
Ok so the SDLT would be payable on the £95k?
Stamp duty is based on the full market value, same as capital gains tax. If you don't do this you would have loads of tax avoidance transactions where you buy 50% of a house then the other 50% a week later.
This isn't right. SDLT is payable on the price paid unless there is some scheme to disguise the real price. Here the real price is £95K. Obviously it wouldn't make any difference as no SDLT would be paid on £120K.
Firefox's example of half now half later doesn't work because they would be linked transactions and added together to calculate SDLT.
People get ever so confused about "deposits" in these cases. The reality is that she is buying a property for £95K that she believes is worth £120K and a lender could presumably sell for £120K if she defaulted, so they should be asked to work out their LTV ratio on the value rather than the price.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0
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