stamp duty query

I bought a house with my brother 2 years ago, and he now wants me to buy him out. As we were first time buyers we did not have to pay stamp duty. However if i was to take over the whole mortgage would i or my brother have to pay any claw back stamp duty.

From Revenue

What is the position where a person, who had obtained first time buyer relief on the joint purchase of a house with another first time buyer, subsequently acquires the other joint owners interest in the house?

A person who obtained first time buyer relief on the purchase of an interest in a house would not be precluded from obtaining first time buyer relief on a subsequent purchase of another interest in the same house provided that person has not purchased another house or part of another house in the intervening period.


mf

Lostbhoy said:

However if i was to take over the whole mortgage would i or my brother have to pay any claw back stamp duty.

Click to expand...

Mf's info above shows that you won't need to pay SD on the purchase of the second half of the house. They consider it to be similiar to being part of the original purchase.

Your question seems in relation to "clawback". No SD Clawback due for the sale of a PPR. SD clawbacks arrise on the renting of a house which was SD exempt as an OO. As long as your brother (and you) never rented the house then you have no SD clawback.

If you now rent the house (or room) to your brother (except under the Rent a Room Scheme) you would be liable for SD clawback. Be careful to ensure that if your brother is going to rent that you stay below the RaRS limit. [lots of info on the RaRS around AAM]

Thanks for your replies, I can rest easier now.