Stamp Duty - Consanguinity relief

[Tim123]

I have seen some references to Consanguinity relief but I dont understand it. I've been to the revenue website and see the following quote but I'm still unsure.

"Consanguinity relief - applies to transfers of land, buildings etc. to certain relatives, e.g. parent, grandparent, step-parent, child, foster-child, brother, sister, half-brother/sister, aunt, uncle, niece, nephew. Half the normal rate of duty applies. This relief does not apply to leases."


Can anyone advise me if this Consanguinity relief applies in my case.

My partner and I are trading up, selling our own PPR to buy my brother and his partners current PPR from them. They also are trading up to buy elsewhere.

Does this mean we get this Consanguinity relief and pay stamp duty at 3% instead of 6%?

 

[ClubMan]

Not all parties are related so if this relief applies it may only apply to part of the transaction (e.g. the sale of half of the property by your brother to you) as far as I know.

 

[mf1]

Does this mean we get this Consanguinity relief and pay stamp duty at 3% instead of 6%?

No. All parties have to be related. So it can only be sibling to sibling - not sibling and siblings partner.

I've done it recently - three brothers.

Brother A buys Brother B's house as an investment - title vests in him solely, spouse must consent to creation of mortgage. Stamp Duty is payable at half the "ad valorem" rate.

Brother C ( on the same day) transfers his family home into sole name ( spouse consents) and sells to Brother B- unmarried. Stamp Duty is payable at half the "ad valorem" rate.

Brother C trades up.

mf

 

[ClubMan]

No. All parties have to be related. So it can only be sibling to sibling - not sibling and siblings partner.

Does that mean that my idea of consanguinity relief on half the transaction above is a non runner?

 

[porterbray]

Yes ClubMan, the transaction is taken as one, not split, and can only involve related parties

 

[ClubMan]

Thanks for the clarification. Maybe I was confusing it with the SD implications where an owner occupier and investor are buying jointly. Or in that case is each joint buyer treated differently for SD?

 

[Taximan]

Clubman I remember studying Tax in the late 90’s and I definitely remember the half rule you discussed for consanguinity relief between brothers if one of the brothers was married.

However on studying tax again last year. It is definitely now only between blood relatives the existence of an unrelated party in the transaction scuppers the whole relief now.

I assume they changed the relief in the intervening period to exclude transactions with spouses involved.

Or maybe I was not such a good student !!