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Stamp duty on change of ownership

vtc6
vtc6 Posts: 57 Forumite
in House buying, renting & selling
Just realised I might be subject to stamp duty :(

I have a mortgaged house with my brother. We are remortgaging and the title and mortgage is being changed from me and my bro to me and my girlfriend. I'm paying my borther off for his portion of the share of the house that we agreed.

How would stamp duty be worked out? Would it be proportional to the share I'm buying from my brother?

Thank you for advice

Comments

  • booksurr
    booksurr Posts: 3,700 Forumite
    it will be based on the chargeable consideration - normally the amount you physically pay your brother. However, if that is less than his share of the outstanding mortgage, then that latter figure is used instead. He is being released from a liability for the mortgage debt and therefore that is the consideration being given and received if the money you pay is less than the o/s debt amount

    loads of info on how SDLT works if you google it
    http://www.hmrc.gov.uk/manuals/sdltmanual/SDLTM03700.htm

    http://www.hmrc.gov.uk/manuals/sdltmanual/sdltm04040.htm
  • vtc6
    vtc6 Posts: 57 Forumite
    Thanks, that's a thorough response.

    With "his share" what would this be? We have a trust deed saying he owns 10%.
  • booksurr
    booksurr Posts: 3,700 Forumite
    cut to the chase:
    - how much do you propose to pay him?
    - how much is the outstanding mortgage?

    where do either of those figures stand in relation to the SDLT thresholds
  • vtc6
    vtc6 Posts: 57 Forumite
    Booksurr, I can message you the figures. But it looks like the panic is over, I am subject to stamp duty, it didn't come to mind as I saw this as a pure remortgage, but it won't be nearly as bad as I thought because I gather it won't be more than half the house value and I can see that stamp duty is now charged in tiers like income tax, not like before where once you entered a tier then your whole house was taxed at the tier percentage.
  • vtc6
    vtc6 Posts: 57 Forumite
    Booksurr, looks like I'm not allowed to send you private messages :(
  • Rain_Shadow
    Rain_Shadow Posts: 1,798 Forumite
    vtc6 wrote: »
    Booksurr, looks like I'm not allowed to send you private messages :(

    I don't think that is your fault. Looks as if booksurr has PMs turned off.
    You can pick your friends and you can pick your nose but you can't pick your friend's nose.
  • booksurr
    booksurr Posts: 3,700 Forumite
    edited 30 December 2015 at 12:59PM
    Rain_Shadow wrote: »
    I don't think that is your fault. Looks as if booksurr has PMs turned off.
    correct, this is a public (and anonymous!) forum and I do not use it to tout for work, nor want such offers as I previously received on occasion, so have turned off private messages
This discussion has been closed.
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