Buying partner out in house - Stamp Duty

B

Bellman

Guest
Both my partner and I bought a house around 12 months ago and our relationship has now ended. As we were not FTB's we paid SD on the purchase price of the house (house cost 380k). If one of us were to buy out the other will must the purchaser pay stamp duty again on 50% of the value of the house or is there an exemption since SD paid on full house last year
 
No exemption I'm afraid.

Stamp duty is payable once the name(s) on the title deeds change.
ANd that included when one name is deleted. i.e. as long as the title deed looks different then stamp duty is payable.

However - there are a few more ins and outs of it though which i can't recall exactly now so best get onto ur solicitor.

But ya- there will stamp duty owed.
 
Were you married? I believe there is an exemption for Divocee's under FF new Stamp duty rules.
 
Hi there,
In a similar situation where I bought with a friend, both of us were FTB's and no stamp duty was paid.

I am thinking about buying him out. Will I have to pay stamp duty on 50% of the property?

Cheers,
M
 
A first time buyer buying out a first time buyer will not need to pay stamp if:

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.
 
guys thanks for guidance, just got solicitor involved to go through scenarios. If we were to put through sale in two transactions ie buy 25% of the house in each transaction (each under the 127k) over a period of say 1 year
 
Bellman

I don't think the two separate transactions is an option - once there is any connection it will be treated by Revenue as one transaction.

We've had this debate before on AAM - if there is a mortgage and either you buy out the others interest and transfer the mortgage or alternatively if you transfer property and take out a new mortgage I believe that Revenue should look at the equity value only - but you must bring that to their attention i.e. house 380K and mortgage 300K then value of half equity is 40K which is under the stamp duty threshold.

mf
 
A friend of mine is in a similar situation, has broken up with her partner and is trying to buy him out of the house they bought together last year. If he was to gift her his half of the house, would she still have to pay stamp duty?
 
Hi,

Gifts are a once off thing and they are only make sence from a tax point of view if your a relitave etc.

see [broken link removed]

The answer in my opinion is the other partner would be nutts to use up their once in a lifetime gift tax oppertunity while spliting up.

Regards,

Gerry
 
Hi all

I'm in a similar situation to Bellman - my partner and I were not ftb when we purchased our property 16mths ago, however the property was a new build so we didn't have to pay stamp duty on it. I have been given advice that I must pay stamp duty on 50% of the current value of the property in order to change the title deeds into my name only, but would really appreciate some advice as to whether or not I am actually only liable to pay stamp duty on 50% of the total equity of the property? The current property value is 400,000 and the outstanding mortgage is 370,000, so as you can see there are dramatic differences between the two amounts that I could potentially owe.

Regards

Boo1
 
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