Stamp Duty Query

Nicolasj

Hi. Please could somebody advise me?
My mum has passed away and she has left me her half share in her house. My dad (her ex husband) owns the other half of the house. They were tenants in common.
I would like to try to buy my dads half of the house, as currently I live in the house.
My question is, would I have to pay any stamp duty?
I know my dad would have to pay capital gains tax on his half as it is not his main residence.
Please could anyone help?
Thank you in advance of any replies.

caronoel

Nicolasj wrote: »

Hi. Please could somebody advise me?
My mum has passed away and she has left me her half share in her house. My dad (her ex husband) owns the other half of the house. They were tenants in common.
I would like to try to buy my dads half of the house, as currently I live in the house.
My question is, would I have to pay any stamp duty?
I know my dad would have to pay capital gains tax on his half as it is not his main residence.
Please could anyone help?
Thank you in advance of any replies.

Sorry for your loss.

SDLT will apply on a Transfer of Equity basis:
https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property

How much are you paying your dad for his interest in the property? Are you taking on any existing mortgage?

Nicolasj

Hi. There is no mortgage. His half is £150k but I'm hoping he might reduce this slightly for a quick deal as I have to do the probate which can take at least 6 months to get the authority to deal with. Here's hoping anyway!

G_M

Nicolasj wrote: »

...I'm hoping he might reduce this slightly for a quick deal as I have to do the probate which can take at least 6 months to get the authority to deal with. Here's hoping anyway!

Not sure I see the logic. Since Probate can, as you say, take 6 months or so, that is hardly a quick deal now is it?

booksurr

Nicolasj wrote: »

Hi. There is no mortgage. His half is £150k but I'm hoping he might reduce this slightly for a quick deal as I have to do the probate which can take at least 6 months to get the authority to deal with. Here's hoping anyway!

so if you pay your father more than £125,000 for his share of the property then yes you will have to pay SDLT as that is the threshold.

if your father will accept less than 125k then no you would not have to pay SDLT (but would still need to submit a nil return). Given he can sell you his share anytime he likes as it has nothing to do with probate I can see why you think a quick deal for his share is possible, but would your father really give you such a big discount?

obviously no SDLT is due on your mother's share which you are in the process of inheriting

silvercar

I know my dad would have to pay capital gains tax on his half as it is not his main residence.

He may not have any CGT to pay, particularly if it was once his home.

silvercar

Nicolasj wrote: »

Hi. There is no mortgage. His half is £150k but I'm hoping he might reduce this slightly for a quick deal as I have to do the probate which can take at least 6 months to get the authority to deal with. Here's hoping anyway!

Quicker than waiting for probate and then persuading you to agree to a sale?

Nicolasj

silvercar wrote: »

Quicker than waiting for probate and then persuading you to agree to a sale?

Minimum 6 months for probate and then it would have to be sold which could easily be another 6 months - he is in his 80's now!

silvercar

Nicolasj wrote: »

Minimum 6 months for probate and then it would have to be sold which could easily be another 6 months - he is in his 80's now!

Only has to be sold if you agree. I don't see that you are under an obligation to sell. In fact if you are the only child of your father, there may be good tax reasons not to sell.