Hi,
Apologies in advance if this post is a bit long winded!! Friend of mine has split up with his fiance and is buying out her share of their property and is worried about what stamp duty he will have to pay.
Basically they bought the house for 360k 2 years ago, he put in 150k cash which worked out at just over 40% of the value of the house and they took out a mortgage for the balance, so effectively they owned the house 70:30. A legal agreement was put in place acknowledging the fact that he put in this 150k and should they ever split up and sell the house that he would get this 150k back.
The house has now been valued at 560k, their existing mortgage is 240k. He has agreed to pay her 91k for her share and the house will be transferred into his sole name. His solicitor has told him that he will have to pay 14k stamp duty ( 5% on half the value of the house)
However my friend is arguing that he should only have to pay 5k stamp duty as his ex-fiance only ever held a 30% share in the property ( 560,000 x 30% = 168,000 x 3% stamp duty = 5040)
Has anyone ever come across this situation before, how does he go about proving his case to the Revenue?
Apologies in advance if this post is a bit long winded!! Friend of mine has split up with his fiance and is buying out her share of their property and is worried about what stamp duty he will have to pay.
Basically they bought the house for 360k 2 years ago, he put in 150k cash which worked out at just over 40% of the value of the house and they took out a mortgage for the balance, so effectively they owned the house 70:30. A legal agreement was put in place acknowledging the fact that he put in this 150k and should they ever split up and sell the house that he would get this 150k back.
The house has now been valued at 560k, their existing mortgage is 240k. He has agreed to pay her 91k for her share and the house will be transferred into his sole name. His solicitor has told him that he will have to pay 14k stamp duty ( 5% on half the value of the house)
However my friend is arguing that he should only have to pay 5k stamp duty as his ex-fiance only ever held a 30% share in the property ( 560,000 x 30% = 168,000 x 3% stamp duty = 5040)
Has anyone ever come across this situation before, how does he go about proving his case to the Revenue?