Question re Stamp Duty

[billynomates]

Legal bods

Whats the postion regarding Stamp Duty when one partner stays in the happy home me---

and pays the other half off?.

Does HMG cash in on my woes or not?

I have two different opinions at the moment both from .

Cheers Phil

[pdV6]

billynomates said:

Legal bods Whats the postion regarding Stamp Duty when one partner stays in the happy home me--- and pays the other half off?. Does HMG cash in on my woes or not? I have two different opinions at the moment both from . Cheers Phil

Unfortunately Gordo gets his cut out of your misery.

[smirnoff]

Actually depends on amount of mortage on the property, as there are 2 on the title deeds and stamp duty starts at £60,000, if your mortgage is above £120,000 you have to pay stamp duty.

Adrian

[AC79xxx]

I thought that stamp duty land tax thresthold had now been raised to £150K?

[pdV6]

AC79xxx said:

I thought that stamp duty land tax thresthold had now been raised to £150K?

Nope

[Pies]

Upto £60k zero stamp duty then

£60K to £250K you pay 1% on the WHOLE price

£250,001 to £500K you pay 3% on the WHOLE price

Above £500,001 you pay 4% on the WHOLE price.

[siwil1]

SMIRNOFF IS SPOT ON!

[pdV6]

The £150k figure probably relates to commercial leases. (where nil band is £0-£150k)

[Incorrigible]

I was under the impression that it's not the value of the mortgage, it was the house that was changing possesion

If you're buying her out of half the house, you pay stamp duty on half the house

Assuming it's worth more than 120k

>> Edited by Incorrigible on Wednesday 2nd March 16:58

[AC79xxx]

pdV6 said:

The £150k figure probably relates to commercial leases. (where nil band is £0-£150k)

managed to confuse myself with Lib Dem pledges

[jimothy]

AC79xxx said:

I thought that stamp duty land tax thresthold had now been raised to £150K?

This was teh amount recommended by Haifax. The Lib Dems claim they will raise it to this if they get in. Mind you, they'll need to as no-one will be able to afford it at the current level as all out spare money will be eaten up by their local income tax.

[mybrainhurts]

So what's the figure due in this case.....where 50% of the property is being bought from the opposition....?

[AC79xxx]

jimothy said:

This was teh amount recommended by Haifax. The Lib Dems claim they will raise it to this if they get in. Mind you, they'll need to as no-one will be able to afford it at the current level as all out spare money will be eaten up by their local income tax.

I'm not convinced it will do anything other than pushing up prices of studios and 1 or 2 bed flats

>> Edited by AC79xxx on Wednesday 2nd March 17:07

[vetteheadracer]

Up to £60,000* nil
£60,001 to £250,000 1%
£250,001 to £500,000 3%
More than £500,000 4%


*The stamp duty threshold for non-residential purchases of land increased to £150,000 on 1 December 2003. Non-residential property transfers, and residential property transfers up to £150,000, in disadvantaged areas are exempt from stamp duty.

[billynomates]

mybrainhurts said:

So what's the figure due in this case.....where 50% of the property is being bought from the opposition....?

Oppostion--

In my case its going to cost me more than 200 grand and















I'm so pleased

So the last thing I want is forking out more £s to bloody HMG

[Racylady]

My understanding was that you have to pay stamp duty on half of the existing mortgage + any consideration you are paying the leaving owner. If that's over £60k, sorry mate, you're gonna have to cough up to Gordie.

[rude-boy]

Are you married or not - if this is part of the Consent Order between you both on a divorce it falls within an exemption for SDLT so nothing would be payable.

If you are unmarried the actual amount of the SDLT to be paid depends on the consideration being paid over to the 'out-going half. 'For example:-

House worth £400k, £150k mortgage. Each own 50%

Her equity share would be worth £125k and that is what you would be paying her.

However you are also jointly and severally liable for the mortgage and therefore you would be taking over her share of the debt on the property so you would also have to pay SDLT on her half of the mortgage, as part of your 'consideration' to be paid to her is 'taking over' her debt to the mortgage company. So the SDLT it would be worked out on 1/2 the value of the property ie £200k, so you will owe the IR £2k with this example. If the property is worth, say £550k you would be 'paying' £275k and have crossed the magic £250k barrier into the realms of 3% SDLT and would be paying £8250.00.

Now could be the time to marry…

[billynomates]

rude-boy said:

Are you married or not - if this is part of the Consent Order between you both on a divorce it falls within an exemption for SDLT so nothing would be payable. If you are unmarried the actual amount of the SDLT to be paid depends on the consideration being paid over to the 'out-going half. 'For example:- House worth £400k, £150k mortgage. Each own 50% Her equity share would be worth £125k and that is what you would be paying her. However you are also jointly and severally liable for the mortgage and therefore you would be taking over her share of the debt on the property so you would also have to pay SDLT on her half of the mortgage, as part of your 'consideration' to be paid to her is 'taking over' her debt to the mortgage company. So the SDLT it would be worked out on 1/2 the value of the property ie £200k, so you will owe the IR £2k with this example. If the property is worth, say £550k you would be 'paying' £275k and have crossed the magic £250k barrier into the realms of 3% SDLT and would be paying £8250.00. Now could be the time to marry…

Very happily divorced

Yep thats the point order was the house was to
to be sold,and split 50/50 on the same day as divorce decree nisi was granted

Then I came in with the offer to buy her out 3mths later.

Which she has agreed to.

Phil

[rude-boy]

Think you might have to pop back to the court to get your order varied then. (not my area but I can't see why this should not be possible.) If your solicitor is still instructed send them a single page letter explaining the situation and asking for a set fee for the cost of doing this, together with disbursments - should be micky mouse.

You could give this lot a call if you have the 30mins to wait on the end of the phome though - 0845 603 0136 - it is the Stamp Taxes enquiry line. Or visit www.inlandrevenue.gov.uk

[billynomates]

rude-boy said:

Think you might have to pop back to the court to get your order varied then. (not my area but I can't see why this should not be possible.) If your solicitor is still instructed send them a single page letter explaining the situation and asking for a set fee for the cost of doing this, together with disbursments - should be micky mouse. You could give this lot a call if you have the 30mins to wait on the end of the phome though - 0845 603 0136 - it is the Stamp Taxes enquiry line. Or visit www.inlandrevenue.gov.uk

John.

Many thanks.

I'll make the call tomorrow.

Just hope I don't end up with a indepth tax enquiry

Phil