Can anyone help me with the following scenario.
John and Mary own a house together as tenants in common.
John and Mary then buy a second house, both parties go on the deeds as joint tenants, but John puts up all the money.
Mary decides that she wants John to have her share in the first house, in repayment of the money John put into the second house on her behalf. To transfer Mary's share to John now would create a stamp duty liability (they are not married). So Mary decides to will her share in the first house to John.
Can the bequest in the will be stated as being in consideration of the money that Mary owes to John in respect of the second house? Will this eliminate John's CAT liability? What if there is a difference in valuations between the 2 houses but the parties are happy to accept a half share in one as being full repayment of the half share in the other?
John and Mary own a house together as tenants in common.
John and Mary then buy a second house, both parties go on the deeds as joint tenants, but John puts up all the money.
Mary decides that she wants John to have her share in the first house, in repayment of the money John put into the second house on her behalf. To transfer Mary's share to John now would create a stamp duty liability (they are not married). So Mary decides to will her share in the first house to John.
Can the bequest in the will be stated as being in consideration of the money that Mary owes to John in respect of the second house? Will this eliminate John's CAT liability? What if there is a difference in valuations between the 2 houses but the parties are happy to accept a half share in one as being full repayment of the half share in the other?