Stamp duty none to pay?

Canned_Heat

Im buying my parents house, its worth £150000, but will sell to me for £120000. Am i right that stamp duty is only above £125000? Will we be treated as evading tax? We are not they are just selling to me as a favour and it means they wont have to use an estate agent and can stay in the house till they find somewhere they really like. All makes sense but just not sure if Mr tax will want some bread.

MortgagesInc

I think that you would normally have to declare it as 'buying under value', and the solicitor would have to send the return in at full market value. However, it it depends if it's raised by either the valuer or your solicitor.

payless

Stamp duty levied on actual consideration ie £120,000 - a level at which of course is currently in the zero rated band

If they have any CGT liability (* ie if not main home) then that is calculated at true value as selling to a connected person.