A friend of mine (call him A) is considering buying a new apartment (new development)with his partner (call him B) for 390,000. However he already owns a place which he bought with another friend (call him C). He will obviously leave the first house and move into the 2nd. C will continue to live in the house on his own, will not rent out any of the rooms and will pay the entire mortgage on his own.
However I am wondering what the implications wrt stamp duty and CGT are for A
1) If he puts the new apartment in his name, I take it that he will be liable for stamp duty clawback on the first place as well as CGT due on any gain, even though he is not renting his room out. However I am also wondering if the entire stamp duty on this property will be clawed back or if it will just be the stamp duty on his half of the property.
2) If he chooses to put his name on the deeds of the apartment but not declare it as his PPR, will him and his partner be liable for the full amount of stamp duty that they should be paying on the apartment as well as any subsequent CGT?
Your thoughts would be much appreciated.....
However I am wondering what the implications wrt stamp duty and CGT are for A
1) If he puts the new apartment in his name, I take it that he will be liable for stamp duty clawback on the first place as well as CGT due on any gain, even though he is not renting his room out. However I am also wondering if the entire stamp duty on this property will be clawed back or if it will just be the stamp duty on his half of the property.
2) If he chooses to put his name on the deeds of the apartment but not declare it as his PPR, will him and his partner be liable for the full amount of stamp duty that they should be paying on the apartment as well as any subsequent CGT?
Your thoughts would be much appreciated.....