stamp duty land tax on shared property

kidmugsy

A and B want to buy a flat for £369k as tenants-in-common, A to own one third, B two thirds. I understand that they have to pay 3% stamp duty.

Later A wants to buy half of B's share. A valuation says that B's whole share is still worth £246k, so that buying half of it would cost A £123k. Is there SDLT to pay?

Similarly if A later buys B's remaining third?

Savvy_Sue

kidmugsy wrote: »

A and B want to buy a flat for £369k as tenants-in-common, A to own one third, B two thirds. I understand that they have to pay 3% stamp duty.

Later A wants to buy half of B's share. A valuation says that B's whole share is still worth £246k, so that buying half of it would cost A £123k. Is there SDLT to pay?

Similarly if A later buys B's remaining third?

I think - and this is not my area of expertise but I did have to look into it recently - that buying the second third you'd still have to pay 3%, but buying the 3rd third would tip you over into the realms of higher SDLT because it would a 'linked transaction'.

If I'm wrong, I hope I'll trigger the experts into giving the right answer.

kidmugsy

Savvy_Sue wrote: »

I think - and this is not my area of expertise but I did have to look into it recently - that buying the second third you'd still have to pay 3%, but buying the 3rd third would tip you over into the realms of higher SDLT because it would a 'linked transaction'.

If I'm wrong, I hope I'll trigger the experts into giving the right answer.

Thanks, Sue - I hope that an expert does come by.