Housing Swap + Exhanging of Money?

[Onemcs]

The parents have decided to upgrade in the housing market and it just so happens that the person who wants their house has the house they've been looking for!

Parents house £300k

Swap house £500k

Now, Any loop holes here? I believe there used to be a Swap and exchange of money, in order to avoid stamp duty?

Thanks in advance!

[Sarnie]

Why do you think you would be able to avoid stamp duty?

[Onemcs]

We don't at all, there was a loophole a few years ago and we were wondering what was the most beneficial way.

Regards,

[Jobbo]

You can't avoid Stamp Duty Land Tax (SDLT) now - this is treated as a sale at market value of each house.

[groan]

There certainly used to be a stamp duty benefit in doing this. Last did one of these 20+years ago. Think it's called an 'excambion transaction' or something like that.

From memory, I think only the value beyond the swap was taxable (ie 200k in your case). Doubtless the tax law has changed since then.

Edited by groan on Monday 21st March 15:12

[Jobbo]

groan said:

There certainly used to be a stamp duty benefit in doing this. Last did one of these 20+years ago. Think it's called an 'excambion transaction' or something like that.

From memory, I think only the value beyond the swap was taxable (ie 200k in your case). Doubtless the tax law has changed since then.

Yes, tax law has changed since then - when SDLT was introduced in 2003, as I pointed out above.