Query Stamp Duty Apply Eventhough Agreed House Price Less Than Limit

C

catlin

Guest
I have query regarding stamp duty .

My brother and sister are buying property from myself and husband .
We agreed price before Christmas of 280k including contents.
Both are first time buyers

Been a few delays between getting solicitors / deeds / mortage etc but we don't need money till later on this year ( building house ) .

My brother was talking to his solicitor and he was telling him as market value in area is approx 350 k he will be liable for stamp duty eventhough
agreed price is less than threshold for stamp duty .

Does anyone know if this is the case
 
yes market value applies otherwise anyone could decide to pay under the thresholds and make the rest up in cash, i know for a fact that where 'connected' persons make the sales these are looked at in detail by Revenue
 
Stamp duty is payable on the value of the house not the sale price. But relatives get half rate. Talk to your solicitor about transferring the property into your sole name prior to closing, you brother and sister can then get consanguinity relief and pay 1.5% instead of 3%. I'm assuming the house is your principal private residence and capital gains tax is not an issue
 
Thanks for replies . The house is in my sole name ( purchased property before was married ) and was orig principal residence but moved house 3 years ago and kept this one so I am aware of requirement to pay captial gains tax .

How do you work out market value for house to satisfy the revenue i.e. is through estate agents locally or do you need surveyor
 
You need a valuation from an estate agent to submit to the revenue when presenting the deed for stamping. Your capital gains tax is also calculated on the value and not the sale price.
 
Ramble thanks for that .

I can appreciate I think stamp duty element but can't believe that have to pay capital gains on gains you haven't actually made ......

Will contact the revenue and look into this further ..

Thanks again
 
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