X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Tax

    Help needed to calculate stamp duty

    Hi

    pls see below and give me your thoughts.

    am in the process of adding my spouse on to a buy to let that i own on my sole name.

    the outstanding mortgage at the moment is £160.000

    am borrowing an extra £20.000 so once her name in the deed we will have an outstanding mortgage of £180.000

    Deed of trust completed 99% in my spouses favor as tenants in common  so she will take over pretty much all the mortgage.

    i own 2no buy to lets and have my name on a joint residential with my brother purcahsed in 2007 (technically i do not own any percentage on the joint Residential its just matter of time before i take my name out)

    been married for one year and my wife has no properties on hire name directly..

    am trying to work out the Stld my spouse is due to pay on this transaction and i come up with a high figure of over 6k

    kind regards

    0
    0

    I come to £1,064, what are your calculations?

    0
    0

    Debbie Franklin

    Director of Tax Peplows Limited

    CTA ACA FCCA

    Hi Debbie

    Thanks for replying

    my calculation comes up to £6410

    my conveyancer has come up with calculations of £2425

    I believe the £1064 calculation is the old way pre additional Stld

    0
    0

    But the additional SDLT no longer applies to transactions between spouses?

    0
    0

    Debbie Franklin

    Director of Tax Peplows Limited

    CTA ACA FCCA

    Hi Debbie

    that's correct many thanks

    earlier on  I was reading  - new changes on stld hire rate minor amendments - and its not very clear but  does mention that...

    need to make my conveyncer aware of this..

    regards

    0
    0

    Further to the above

    Conveyancer is standing by his decision of stld amount £2420 (based on purchase price of £80,680) he confirmed on the email that he has checked the amount with Hmrc and the figure is correct..

     

    I called Hmrc direct and gave them all the figures/facts and the amount they worked out over the phone was over £6000

     

    Hmrc also confirmed that the higher rate of 3% stld will stand in our case as the property is buy to let and not residential (November 22nd 2017 minor amendments stand for residential properties only)



    regards

    0
    0

    Both incorrect.

    Conveyancer is ignoring this when calculating the consideration.

    FA03/SCH4/PARA8(1B) ensures that in determining the amount of debt assumed each person’s liability for the debt is taken to be a proportion of the debt corresponding to the share that they own in the property subject to the debt.

    And both are missing the point of this (no reference at all in the legislation to say it must be your residence)

    SPOUSES AND CIVIL PARTNERS PURCHASING FROM ONE ANOTHER

    AnchorAnchor9A(1)  A chargeable transaction is not a higher rates transaction for the purposes of paragraph 1 if–

    (a)there is only one purchaser,

    (b)there is only one vendor, and

    ©on the effective date of the transaction the two of them are–

    (i)married to, or civil partners of, each other, and

    (ii)living together (see paragraph 9(3)).

    Anchor9A(2)  Where–

    (a)there are two purchasers in relation to a chargeable transaction, and

    (b)one of them (“P”) is also the vendor in relation to the transaction,

    P is to be treated for the purposes of sub-paragraph (1) as not being a purchaser.

    Anchor9A(3)  Where–

    (a)there are two vendors in relation to a chargeable transaction, and

    (b)one of them (“V”) is also the purchaser in relation to the transaction,

    V is to be treated for the purposes of sub-paragraph (1) as not being a vendor.


    0
    0

    Debbie Franklin

    Director of Tax Peplows Limited

    CTA ACA FCCA