We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Stamp duty when buying out joint owner?
BigBird2013
Posts: 5 Forumite
Hey Experts,
Please can someone advise? I'm currently buying out my ex partner (joint owner, never married). The Flat is valued at £181,000 we bought it for £165,00 4 years ago and have a current mortgage of £143,500. We have agreed between us to that I pay him £12,500 (the money he put into the flat and a little extra I am being given by my family) for his share on top of the legal and admin fees.
My solicitor has asked me to sign a Stamp Duty Land Declaration form allowing them to contact HRMC. Does this mean I a liable to pay some Stamp duty? If so does anyone know what I am looking at?? How do I do the sums?
Ahhhhhhh!:(
Please can someone advise? I'm currently buying out my ex partner (joint owner, never married). The Flat is valued at £181,000 we bought it for £165,00 4 years ago and have a current mortgage of £143,500. We have agreed between us to that I pay him £12,500 (the money he put into the flat and a little extra I am being given by my family) for his share on top of the legal and admin fees.
My solicitor has asked me to sign a Stamp Duty Land Declaration form allowing them to contact HRMC. Does this mean I a liable to pay some Stamp duty? If so does anyone know what I am looking at?? How do I do the sums?
Ahhhhhhh!:(
0
Comments
-
See here:
http://www.hmrc.gov.uk/sdlt/calculate/transfer-ownership.htm
I *think* the consideration would be £84,250 (12,500 cash plus 50% of the mortgage) so under the SDLT threshold. The form still needs to be completed though.
Why not ask your solicitor?0 -
Yep...
SDLT is based on consideration (which is payment in cash, goods, and taking over any os mge balance).
As joint owners, HMRC for SDLT purpoes, will deem the mge to be split on a 50/50 basis.
Nil rate threshold is currently 125k.
So yes, based on the figs given here, there won't be any Stamp duty liability.
Hope this helps
Holly0 -
Thanks guys...x0
-
just out of interest....
When your solicitor asked you to sign the SDLT form did you not think to ask him/her, "er, why?"...Sealed pot challange no: 3390
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.3K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.3K Work, Benefits & Business
- 599.4K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards