Stamp Duty for 25% Share of property

SDLT_Geek

rebeccavw said:

SDLT_Geek said:

rebeccavw said:

SDLT_Geek said:

rebeccavw said:

I seperated from my partner with whom I jointly owned a property. To enable me and my children to stay in the home my mum wants to pay out my ex partner and take 25% share of my property. I will need to pay rent on this share.

Would she have to pay stamp duty on for the 25% share ? It would be a shared ownership arrangement. Is this possible to do privately not through housing association arrangements? 

Joint ownership between individuals is a different structure from shared ownership with a social landlord.

For various reasons with you mother buying a 25% share, you would not want to try to replicate a shared ownership structure.

You are likely better off owning in shares with a declaration of trust setting out the agreed terms.

Thanks and would she have to pay higher rate stamp duty with declaration of trust 

Yes, say the property is in England and she end up with a 25% share for £100,000, then she would pay stamp duty land tax of £5,000 (or £7,000 if she does not count as UK resident).

As @Keep_pedalling says, it would be different if the money is advanced as a loan.

Thanks as my mum owns her own house would she not be liable for higher rate of stamp duty ? Is the stamp duty percentage of £100,000 her share or £400,000 the full house value ? 

Yes, it would be at the "higher rates", so assuming it is SDLT (in England) and she is UK resident, then the SDLT would be £5,000 if she pays £100,000 for the share.