Stamp Duty if my co-owners buy my share of the house?

O

OneZero

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Situation: 3 Brothers bought home in 2004. All 3 living in the home as their PPR. 1 brother now wants to buy his own home and is seeking to remove his name from the mortgage and title deeds so he can get his own mortgage (Not possible to get a mortgage if he remains on this house).

The brothers are happy for this to go ahead and the bank have just given approval. No money is changing hands this is only really happening to enable one brother to get his own place - nobody is walking away from negative equity or any future gains (wishful thinking!)

Value of home: €210,000
Outstanding Mortgage: €275,000 (Tracker)
Note: We did release equity from the house a few years back not sure this makes any difference.

Question: As i am the one who wants to be removed from the mortgage i have to look after everything including covering all the costs which i understand and dont mind. Will this transaction require stamp duty to be paid and if so how much? 1% on market value of the house, 1% on my share? Is there any relief?

Thanks in advance.
 
Stamp duty's not my area but logic would suggest that it would be 1% on the market value of the 1/3 of the house being transferred to the 2 brothers. So that'd be about €700 based on the figures above.

That is the worst case scenario - maybe there is less (or none) payable, but as I said it's not my area of expertise. (This question might be better answered if moved to the taxation forum. Since you're a new user I don't know if you can PM the Mods so I'll ask to have it moved.)
 
First time poster but long time reader so should have known this would be better placed in the taxation forum! Anyway, thanks for that information.. makes sense to me that only 1/3 of the value should be liable to stamp duty but you can never be too sure with these things.

I know there is a relief, I think it might be called relative relief but this does not apply to transfer of residential property. So maybe someone knows of another relief.
 
I was more thinking along the lines of it being possible that if you are merely removing yourself from the title (in a case where it is a joint tenancy and one of the joint tenants disclaims his ownership) then it might not be a transaction for stamp duty purposes.

On a side note, it is a disposal for CGT purposes, and you are taking a CGT loss on the transaction - however as it is a disposal to connected persons the loss can only be used against gains on subsequent disposals to the same connected persons, so you might never get relief for the CGT loss.
 
Your solicitor should be an expert in this area. What does he or she say?

It seems very clear to me. Your two brothers are buying one third of the house from you and they will have to pay 1% stamp duty on the purchase price. I think that the consanguinity relief has been discontinued.

I think it's in the correct forum as it is to do with buying a house.

I will edit the title.

Brendan
 
My solicitor was not sure and said he would look into it and get back to me. So i decided to do some research on it myself just in case!
 
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