Joint Ownership & Stamp Duty

  • Thread starter Ordinary Man
  • Start date
O

Ordinary Man

Guest
Great site. First visit here so hopefully somebody can help me.
My query is about stamp duty on joint ownership properties. Myself and my former business partner have half shares in two properties however we now want to split these properties between us ie he will take one on completely and vice versa. This will require a change to the deeds etc and may require one party paying a minimal amount to the other but what are the stamp duty liabilities and how are they calculated? Secondly are there any other taxes that need to be taken into consideration.
I know there may be CGT but are there any other taxes?
For what is basically a swap, there will be minimal money changing hands, I feel it's very unfair that a large amount of stamp duty will be taken for this.
All help is greatly appreciated.
 
There used to be an allowance in a "swap" situation i.e. stamp duty only payable on the difference but that is no longer the case. It would be

1. CGT for each on disposal - although I wonder ( probably not) if there would be any allowance with related transactions (?)
2. Stamp duty for each on the market value of the properties being transferred to them.

If you post the values ( or check Revenue.ie stamp duty section) you can calculate the liability.


mf
 
Rather than changing ownership if it triggers stamp duty, why dont you ask legal adviser about a legally binding side agreement that might avoid the transfer until a disposal to a 3rd party arises?
 
It will also depend on which house you lived in - if you lived in one and rented the other or if you lived in one each where the other was an investor.

Sarah

www.rea.ie
 
Both of the properties are commercial/retail so neither are a place of residence. They were purchased while we were in business together.
What is happening at the moment is that I am trying to buy a house for myself as I am still renting.
Surely stamp duty on the whole property is illegal when in reality only half of the building is being sold, to the person who owns the other half.
I could understand having to pay stamp duty on half the value but on all of it seems grossly unfair and will erase most of the equity in the property which in effect will make the transaction pointless.
I fail to see how that can be morally right whatever about being legal.
 
Moral or not, if you are buying 50% of an asset from another person and Stamp Duty is deemed payable then it must be paid (on the 50%). If there has been a capital appreciation of the asset then CGT may also be payable.

Sarah

www.rea.ie
 
Are you sure that stamp duty is only payable on 50% of the value. Someone else has said the stamp duty is payable on 100% value of the property.
Regarding the CGT I am assuming that that would apply to the person selling and the stamp duty to the person buying!!
I have emailed the revenue about this but they are slow to come back to me.
 
You must log in or register to reply here.
Back
Top