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Stamp Duty query
neil7462
Posts: 24 Forumite
My wifes mother passed away last year and owned a three bedroom house, my wife is the next of kin and has inherited the house.
Her sister and partner want to buy it as they have a one bedroom flat, that is too small, they own the flat outright.
The house has a value of £325000 and my wife is gifting her sister £100000 and they are getting a mortgage for the remaining £225000
My question is about the amount of stamp duty they need to pay, is it £22500 for owning a second property or is it £13250 because the amount they are paying is £225000 for the house. They do believe it is going to be £22500
thank you
Her sister and partner want to buy it as they have a one bedroom flat, that is too small, they own the flat outright.
The house has a value of £325000 and my wife is gifting her sister £100000 and they are getting a mortgage for the remaining £225000
My question is about the amount of stamp duty they need to pay, is it £22500 for owning a second property or is it £13250 because the amount they are paying is £225000 for the house. They do believe it is going to be £22500
thank you
0
Comments
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Tax is on the net consideration so on the £225k.0
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That depends how things are being done, surely? If the £100k that the wife is giving to them is in the form of a gifted deposit, that will make the consideration still the full value of the property?🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
Balance as at 31/08/25 = £ 95,450.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
She's the seller though. She gets the £100k straight back (if it actually goes anywhere) so it doesn't form part of the net consideration.EssexHebridean said:That depends how things are being done, surely? If the £100k that the wife is giving to them is in the form of a gifted deposit, that will make the consideration still the full value of the property?1 -
I agree with @EssexHebridean. The chargeable consideration for SDLT will depend on the type of mortgage and whether the lender requires that £325,000 is put on the transfer, or is content for the transfer to show a below market value price of £225,000.neil7462 said:My wifes mother passed away last year and owned a three bedroom house, my wife is the next of kin and has inherited the house.
Her sister and partner want to buy it as they have a one bedroom flat, that is too small, they own the flat outright.
The house has a value of £325000 and my wife is gifting her sister £100000 and they are getting a mortgage for the remaining £225000
My question is about the amount of stamp duty they need to pay, is it £22500 for owning a second property or is it £13250 because the amount they are paying is £225000 for the house. They do believe it is going to be £22500
thank you
There is a blog about the issues here: https://www.blakemorgan.co.uk/bank-of-mum-and-dad-concessionary-purchases/1
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