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Who has to pay SDLT in these situations?
RugbyTry
Posts: 1 Newbie
Father owns property 1 worth 600k. Property 2, worth 450k, is owned in equal shares by Son 1, Son 2 and Daughter. No mortgages on the properties and both properties are their main home.
What SDLT is liable in each of the two scenario's:
Scenario 1: Father gifts property 1 to Son 1 and Father buys 1/3 share of property 2 from Son 2 for 150k.
Scenario 2: Father gifts property 1 to Son 1, Son 1 gifts his 1/3 share of property 2 to his Father and Father buys 1/3 share of property 2 from Son 2 for 150k.
I believe that the Father will have to pay SDLT on buying the 1/3 share from Son 2 but what about the gifts?
What SDLT is liable in each of the two scenario's:
Scenario 1: Father gifts property 1 to Son 1 and Father buys 1/3 share of property 2 from Son 2 for 150k.
Scenario 2: Father gifts property 1 to Son 1, Son 1 gifts his 1/3 share of property 2 to his Father and Father buys 1/3 share of property 2 from Son 2 for 150k.
I believe that the Father will have to pay SDLT on buying the 1/3 share from Son 2 but what about the gifts?
0
Comments
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The big question is why would he be crazy enough to give his home away. Assuming he is going to carry on living there this will be a gift with reservation of benefit, so the main tax issues as far as the gift is concerned will be IHT and CGT.0
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Yes, leaving aside the SDLT, I'm wondering why they're doing this. Is anybody moving house?
Also bear in mind that while genuine gifts are SDLT-free, they're not "gifts" if something is being given in return (otherwise everybody would just "gift" the price of the house and coincidentally receive the "gift" of a house...).0
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