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Post Info TOPIC: Stamp duty on BTL properties
Lyndsey


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Stamp duty on BTL properties
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Hi is anyone good on the new BTL stamp duty rules? The scenario is... 2 brothers inherit a btl property (already let out) without a mortgage 1 brother wants to keep and the other wants to be bought out So the 1 brother wants to get a BTL mortgage on the property to buy his brother out Would this be subject to stamp duty? I know normally inherited properties are not subject to to stamp duty, but would the buying one party out or mortgage be classed as a transaction subject to stamp duty? The probate hasn't been finalised so if there is anything they can do prior. By the way this is a personal issue and I'm not giving out tax advice :) Thanks Lyndsey

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abacus12345


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Hi. Yes stamp duty payable on price of share bought, if over threshold. Probable CGT if share sold for more than probate base, payable by selling brother.

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Lyndsey


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Ah thanks that makes sense. I doubt there will be CGT at the minute.

So I am presuming the % charged will be on the amout bought ie less than £125000 will be 3% rather than the full value of the house?



-- Edited by Lyndsey on Thursday 23rd of February 2017 12:11:35 PM

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abacus12345


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If this will be the buyers second home: <125k is 3% > 125k is 5%. There are others rates above X amount which I can't remember now, I think it's 8% over X. Inheritance can be tricky to get a base figure, probable to be probate but could be MV as base. Definitely get professional advice on that score, I only know the basics as I've never had to deal with.

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Mike W


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They could look at the option of a Deed of Variation regarding the Will if all parties/beneficiaries agree. The solicitor will be able to advise I'm sure.



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Mike
Lyndsey


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Thanks, I have had a look at the deed of variation before. I will have to get the guys to talk to a solicitor. They expect me to know everything!

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