stamp duty question.

[mikeveal]

Hi, a quick question about stamp duty...

I own 1/3 of a house. So my name is already on the deeds.
I wish to buy the remaining 2/3rds.
Will I have to pay stamp duty?

Thanks.

[silverous]

Not an expert but just google'd it and if you look at the below:

https://www.gov.uk/guidance/sdlt-transferring-owne...

Does this section apply?

"If you transfer or divide up jointly-owned property or land: unmarried couples and other joint owners
You don’t pay SDLT if two or more people jointly own property (as joint tenants or tenants in common) and you divide it physically and equally and own each part separately. But, if one person takes a bigger share, or all of the other’s share, and pays cash or some other consideration in exchange, you must tell HMRC. If the amount you pay is more than the current threshold, you’ll pay SDLT on it, see example 4."

[Ozzie Osmond]

mikeveal said:

I wish to buy the remaining 2/3rds.
Will I have to pay stamp duty?

Yes. And you will need some sort of market price to base it on.

Examples:

1. House worth £300k on the market today, according to estate agent's written assessment. You buy 2/3rds for £200k and pay stamp duty on that £200k.

2. House worth £300k on the market today, as above. Your "friendly aunt" agrees to sell you her 2/3rds at half price - so you only pay £100k to buy her out. Stamp Duty is charged on the £100k paid. BUT you have received a gift of £100k and need to be alert to tax consequences, principally Inheritance Tax. Capital Gains Tax may also be an issue depending on the detailed circumstances.

[mikeveal]

Many thanks, I need to get a squirrel on then to avoid the increase in buy to let stamp duty!
Much appreciated.