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A quick question re stamp duty

My friend is looking to purchase his council rtb property for £300k with a discount of £100k so purchase price is £200k

His solicitor has confirmed the stamp duty will be 1% of £200k instead of £300k.
Is this correct. The last thing he wants to do is pay more that what is originally expected.

You're thoughts please

Comments

  • kingstreet
    kingstreet Posts: 39,115 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Yep. It's based on the actual "consideration" not the Council's notional valuation.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • bikeman17
    bikeman17 Posts: 234 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    kingstreet wrote: »
    Yep. It's based on the actual "consideration" not the Council's notional valuation.

    So the stamp duty is based on the original valuation which is £300k?
  • kingstreet
    kingstreet Posts: 39,115 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No. It's based on the actual consideration being paid, not the original valuation.

    The solicitor is the actual tax collector here, so your friend can rely on what they say.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • InMyDreams
    InMyDreams Posts: 902 Forumite
    Part of the Furniture 500 Posts Name Dropper
    kingstreet is using the term"consideration" here in the legal sense (ie the value of what is actually handed over, be that money or any other payment in kind) rather than what anyone "considers" the property to be worth.

    But my thoughts are that if you are paying for the advice of a solicitor, I would be more inclined to listen to that than what any stranger on an Internet forum might think. (Not that I don't 100% agree with kingstreet here.)
  • bikeman17
    bikeman17 Posts: 234 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks everyone for your input.
    My friend was only requesting this information as his fellow friend/neighbour on the other side of the road bought his 290k property from the council with 100k discount but paid 3% stamp duty, £8700.

    Not sure whose side the issue lies...
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