Stamp Duty Calculation help

cha1n

Hi

I was hoping someone could help me calculate stamp duty on a transfer of equity. My solicitor will do so, but alarmingly his legal assistant emailed me with an estimate on the fee, which is alarmingly higher than what I'd calculated (£14k)!

A transfer of equity is taking place, where my ex partner (not married) is being removed and my new partner added. My understanding was that no stamp duty is payable on my half of the property. So my calculations were based on:

Property value; 300k
money changing hands to buy ex out; 20k
Remaining mortgage balance; 230k

Best case, I thought my partner would need to pay stamp duty on half of the remaining balance, plus money changing hands, so £135k. She owns a flat, so 3% on the first 125k and 5% on the remaining 10k. So £4250.

Worst case that it's based on half of the value of the property, then £6k ish.

I don't understand why I have to pay any stamp duty according to the examples on the government website?!?

Really appreciate any advice on this, I'm very panicked right now as the transfer will not go ahead if the stamp duty is £14k like the solicitors assistant has mentioned!

cha1n

Nevermind. The assistant replied immediately saying I was correct but if anyone more experienced notices an error, I'd appreciate if you'd let me know. Thanks.

gooludare

I seem to be getting conflicting opinions regarding SDLT payable by first time buyers buying properties in London. Someone says ist time buyers don't pay any stamp duty at all for a property up to £500,00 price. Another person says it's only the first £300,000 that is exempted from stamp duty. What is the correct standing on this? In the light of the correct standing, what is the stamp duty payable for a purchase of £510,000 in London?

SDLT_Geek

gooludare wrote: »

I seem to be getting conflicting opinions regarding SDLT payable by first time buyers buying properties in London. Someone says ist time buyers don't pay any stamp duty at all for a property up to £500,00 price. Another person says it's only the first £300,000 that is exempted from stamp duty. What is the correct standing on this? In the light of the correct standing, what is the stamp duty payable for a purchase of £510,000 in London?

No first time buyers' relief is available at all on a property bought for over £500,000.

davidmcn

gooludare wrote: »

Someone says...Another person says...

Who are these people? Are they professionals who ought to know what they're talking about? Or well-meaning amateurs?

gooludare

One definitely an amateur, the other a professional I suppose. Do you or someone else in the forum have a firm answer and what's the exact figure for the stamp duty?

LRmortgage

£15,500 SDLT payable on a £510,000 purchase for a FTB.

You loose the relief because the purchase is over £500,000

SDLT_Geek

Yes £15,500. There is a calculator here: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

This assumes there is no joint buyer or spouse / civil partner with another property which could trigger the higher rates.

davidmcn

gooludare wrote: »

One definitely an amateur, the other a professional I suppose. Do you or someone else in the forum have a firm answer and what's the exact figure for the stamp duty?

Why don't you just use the calculator on HMRC's website?