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Stamp Duty Advice
steveigray
Posts: 10 Forumite
Hope someone can give us a bit of advice. My partner inherited half of her parents house 3 years ago when her mother passed away, her father now wants to sell us his half of that house to buy somewhere new with his new partner. My partner and I are going to sell our flat and purchase his half of the house (at market value). The house has been valued at £240,000, so we'd be paying him £120,000 for his share. Hope you're following so far!
So the question is, would we liable for stamp duty as the value of the property is obviously well above the threshold for stamp duty or will we pay nothing as we're only paying £120k for our share which is below the threshold?
So the question is, would we liable for stamp duty as the value of the property is obviously well above the threshold for stamp duty or will we pay nothing as we're only paying £120k for our share which is below the threshold?
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Comments
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https://www.gov.uk/stamp-duty-land-tax/land-and-property-transfersAnd if the amount they pay is more than the current threshold, they’ll have to pay SDLT on it, see example 4.0
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From this I gather no but you'd still need to inform HMRCSDLT isn’t payable if 2 or more people jointly own property, whether held as joint tenants or tenants in common, and they decide to divide it physically and equally and own each part separately.
But if one person takes a bigger share, or all of the other’s share, and pays cash or some other consideration in exchange, then HMRC must be notified of the transaction. And if the amount they pay is more than the current threshold , they’ll have to pay SDLT on it, see example 4.
https://www.gov.uk/sdlt-transferring-ownership-of-land-or-property#transferring-or-dividing-up-jointly-owned-property-or-land---unmarried-couples-and-other-joint-owners0 -
I can see this post is a few days old so you prob have the answer but just incase you haven't , I did a very similar transaction myself , and no you wouldn't pay any stamp duty on that amount. You just need to ensure your solicitor states the purchase price as £120K.0
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on the SDLT return......, and no you wouldn't pay any stamp duty on that amount. You just need to ensure you or your solicitor states the purchase price as £120K.0
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