stamp duty question

theGrinch

Hello. I am considering moving abroad due to my work next year and this could last some time. I purchased a property last year in the UK (my PPR) at £320k and the tie in period ends in June 2006. I used a £80k loan from my mother to assist my purchase.

My mother is selling her property and has offered to purchase my PPR for £240k. My intention was to sell anyway.

Given the details above will this be treated as a reasonable price and a straightforward purchase for the purposes of stamp duty (based on £240k) or will it be deemed "a connected sale" and the market value used for the purposes of stamp duty?

thank you in advance

reddevilled

I am no expert in SD but I would have thought that the connected parties rules would apply and for SD purposes the consideration is largely irrelevant and MV would be used.

Tammyleicester

I work as a legal cashier and dealt with a case like this last week..
The house was worth £145000.00 and the daughter bought it for £125000.00
There was then a gifted deposit of £10000.00 so the stamp duty was then exempt (under £120000.00)

I confirmed with a manager at the Inland rev that Stamp duty is only payable on the amount of funds that changes hands.

Hope this helps
x