Stamp duty question - so confused

Deniseconfused

England - so SDLT 

Me and partner ( not married and wont be ) selling both houses. 

Mine before, his after. Many reasons for this - mostly convenience as its a new build so completion on notice. 

I'll buy house £720,000
mortgage of £250,000

when we sell his, he'll "buy into" the house for £250,000 ( with solicitor paying off the mortgage with those funds ) plus he will give me half of the original SD, half the upgrades and half of the after sale very expensive fitted wardrobes, new sofa, furniture and garden landscaped. 

The deed of trust will say consideration of £250,000 to redeem the mortgage. We will own 50/50 tenants in common. 

Am I correct that SDLT will be assessed for him only on the consideration of £250,000 that pays off the mortgage ?

TIA  

NorthYorkie

As you are already engaging a solicitor, he/she will advice on Stamp Duty.

P.s You seem to be making a gift to your partner; a share of the property worth £360K for only £250K

Keep_pedalling

I am pretty sure he wil be paying SDLT on the £250k he is paying but there is a second potential tax issue that as an unmarried couple you need to consider and that is IHT if one of you meets an early death. With no spousal exemptions available you could be facing a substancial tax bill, so if marriage / civil partnership is out of the question then you should look at insurance to cover this possibility.

Wills and financial LPAs are also essential. 

heroic

I agree with what’s already been said – SDLT would just be on the £250k consideration he’s paying to clear the mortgage, not on the full value of the property. Your solicitor should confirm that for you anyway as part of the transfer.

Also seconding the point on wills/LPAs and insurance. It’s definitely worth sorting those if marriage isn’t on the cards, just so everything’s really clear and you’re both protected.

Sounds like you’ve got it all planned out well otherwise!

Deniseconfused

Brill thank you 👍🏼

Oh yeah we will both be sending our money to our respective children hence tenants in common and not needing the spousal exemption but allowing the other to live in the property if one dies first until the death of the last. 

Deniseconfused

NorthYorkie said:

As you are already engaging a solicitor, he/she will advice on Stamp Duty.

P.s You seem to be making a gift to your partner; a share of the property worth £360K for only £250K

No haven't instructed one yet as our plot hasn't been released. Plus I find most conveyancing is done by paralegals nowdays and so so when it comes to knowledge. I find those on here are much better with spot on advice 👍🏼

re the £360k for £250k - not really as he's given me money for other stuff 😃

SDLT_Geek

Deniseconfused said:

England - so SDLT 

Me and partner ( not married and wont be ) selling both houses. 

Mine before, his after. Many reasons for this - mostly convenience as its a new build so completion on notice. 

I'll buy house £720,000
mortgage of £250,000

when we sell his, he'll "buy into" the house for £250,000 ( with solicitor paying off the mortgage with those funds ) plus he will give me half of the original SD, half the upgrades and half of the after sale very expensive fitted wardrobes, new sofa, furniture and garden landscaped. 

The deed of trust will say consideration of £250,000 to redeem the mortgage. We will own 50/50 tenants in common. 

Am I correct that SDLT will be assessed for him only on the consideration of £250,000 that pays off the mortgage ?

TIA  

Others have suggested the chargeable consideration given by your partner is limited to the £250,000 cash paid to clear the mortgages.  But the other elements, which I have put in bold, could also amount to chargeable consideration if paid / done in order to get the half share.

Deniseconfused

SDLT_Geek said:

Deniseconfused said:

England - so SDLT 

Me and partner ( not married and wont be ) selling both houses. 

Mine before, his after. Many reasons for this - mostly convenience as its a new build so completion on notice. 

I'll buy house £720,000
mortgage of £250,000

when we sell his, he'll "buy into" the house for £250,000 ( with solicitor paying off the mortgage with those funds ) plus he will give me half of the original SD, half the upgrades and half of the after sale very expensive fitted wardrobes, new sofa, furniture and garden landscaped. 

The deed of trust will say consideration of £250,000 to redeem the mortgage. We will own 50/50 tenants in common. 

Am I correct that SDLT will be assessed for him only on the consideration of £250,000 that pays off the mortgage ?

TIA  

Others have suggested the chargeable consideration given by your partner is limited to the £250,000 cash paid to clear the mortgages.  But the other elements, which I have put in bold, could also amount to chargeable consideration if paid / done in order to get the half share.

Thanks so much !! This was what I was thinking maybe a fly in the ointment - hence asking on here 
I knew you would know 👍🏼