Stamp Duty on investment question?

T

tosullivan

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I was talking to a friend of mine yesterday and he said he is buying a house with his brother. His name is going to be on the deeds 50/50 with his brother. Its his brothers first house & its new.

He relaeased equity from his own house to pay half the cost of the house and his brother took out a mortgage for the other half. There will be 2-3 rooms rented and his brother will also live there.

He told me that he is not liable for Stamp Duty as he is effectively a sleeping partner and will not be taking rent from the property. I would have thought, regardless of him actually taking rent, that he would be liable as its an investment?

Reason, I'm asking is that I recently paid SD on a holiday home that I only plan to use ourselves. We do not intend to rent it and we will be the sole occupiers. Is that not the same thing?
 
I was talking to the wife and she said she thinks she recalls something brought in a few yrs ago whereby a family member can help out another family member to get their foot on the ladder and not have to pay the SD???
 
there is stamp duty payable on the house unfortunately where he is going on the deed and he is not a first time buyer it is the other person who is a first time buyers misfortune as it will be deemed an investment purchase with full investor stamp duty payable. the only way that there would be no stamp payable is if the first time purchaser went on the title on their own and the other party joined in with the mortgage, major disadvantage there is that both parties would be liable to the mortgage& to the bank where only one party technically on paper owns the property.
 
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