She has been told by her solicitor that she will be liable to pay 3% of £290,000 combined valuation of both properties and that I will be liable to pay up to £3000 even though the property I am buying is valued at £120,000 she has been told it is because we are related and it is regarded as an exchange of property even though we are both buying and selling .
2007-04-30 06:45:15 · 4 answers · asked by Susan O 1 in Business & Finance ➔ Taxes ➔ United Kingdom
Yes, but the Law is about to be changed !!
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Proposals in Budget 2007 = you might want to delay the transaction !!!!
Current Customs interpretation re: Stamp Duty regarding 'Linked Transactions' (see BBC 'working lunch' link below) = was designed to catch Businesses like Bovis Homes buying/selling rows of houses ... and is now being used to catch 'normal' people
See last ref below .. extract follows :-
"6) However if the parties are ‘connected persons’, for example as husband and wife or brother and sister, there is a further rule because the two legs of the exchange are ‘linked transactions’. This means that the market values are aggregated and the rate of stamp duty land tax is that applicable to the aggregate. So if property worth £300,000 is exchanged for property worth £220,000 the rate of SDLT on both legs is 4%, the rate applicable to £520,000."
In Budget 2007 ...
"This measure will provide that the two legs of an exchange will not be linked with each other. So in the example above there will be a charge at 1% on the acquisition of the property worth £220,000 and a charge at 3% on the acquisition of the property worth £300,000."
2007-04-30 07:12:31 · answer #1 · answered by Steve B 7 · 3⤊ 0⤋
Sounds a bit odd. There is no stamp duty payable up to £125,000 and only only 1% from £125,000 to to £250,000, so I do not know where you're solicitor is getting his figures from. I'd be tempted to to seek further professional advice on this .
The 3% figure is correct for a property of £290,000, but I've never heard of adding two together before, but then again I'm not a solicitor. As I said, ask a different solicitor.
The above figures are correct from 05/04/07.
2007-04-30 06:53:47 · answer #2 · answered by Ahwell 7 · 0⤊ 0⤋
i think you only have to pay stamp on houses worth £160000 or more.
2007-04-30 06:49:24 · answer #3 · answered by EVH 5150 4 · 0⤊ 0⤋
how about a legal agreement betwen you two that you own that and she owns that and she pays your taxes and vice versa.
2007-04-30 07:00:46 · answer #4 · answered by Anonymous · 0⤊ 0⤋