Selling Property & Tax Implications

I

Iceman732

Registered User
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I have a query in relation to the tax implications on a proposal by a prospective buyer on my house.

The proposer has offered to exchange his house and pay the balance due to me as my house is worth more. I wondering what tax implications this will cause.

I imagine I will be liable to Stamp Duty on the new property. CGT will not be an issue as the house I'm selling is my PPR and always has been.

Does anyone see any benifits to agreeing to this transaction?

I would appreciate your comments.

Regards,

Iceman
 
You need to get professional advice on the tax implications of this sort of deal in my opinion.
 
Fancy giving me your opinion on it though?

I would imagine it's treated as two seperate sales....?
 
"Does anyone see any benifits to agreeing to this transaction?"

As Clubman say, do seek professional advice. Broadly speaking, the tax implications are the same as a normal bog standard sale/purchase sitaution so no CGT for you on the disposal of your property and stamp duty on both properties will be payable by the purchaser of each at full market value. There used to be an allowance so that stamp duty was only payable on the difference but that is long gone. Make sure your prospective purchaser is not making any incorrect assumptions in that reagrd.

The BIG benefit for you is, hopefully, concluding a sale of your property in what has been an uncertain market. And if the exchange house is one that suits you, then its a win/win situation.

mf
 
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