Stamp Duty & Related Parties

[paulpd]

If a parent wants to sell her PPR to her married daughter at a knockdown price :

- Is the stamp duty payable by the daughter & son in law calculated on the consideration, or the market value?
- Does the parent/daughter relief apply for half or do you lose the relief between family due to both her and her husband being the purchasers?


Thanks!

 

[mf1]

- Is the stamp duty payable by the daughter & son in law calculated on the consideration, or the market value?

Always market value. Otherwise we could all sell our properties to our friends for 50p and pay no stamp duty!

- Does the parent/daughter relief apply for half or do you lose the relief between family due to both her and her husband being the purchasers.

Has to be blood relations only. No spouses.

My understanding is that daughter takes and then, in three years time, transfers into joint names. Otherwise, there are CAT and stamp duty issues.

Of course, what is usually going on, is that daughter and hubby want to renovate the house and need to borrow big money which they can only borrow on the basis of the property being in their joint names.

mf

 

[PC 80]

I am assuming that the daughter and/or husband are not first time buyers. If they are, there might not be a stamp duty liability.

 

[paulpd]

They're not first time buyers.

The daughter wouldnt get the finance on her own so the husband has to be named on the loan and title.

I thought there may have been a way to create two contracts. One between mother and daughter and the other between mother in law and son in law. A bit messy though!

Thanks