S
Simba
Guest
I wonder if anyone might have any insights on the following situation:
My sister and I built a house 5 years ago and we were both FTBs. I got married last year and this Feb. my husband and I bought my sister out of the house. The house was valued at 500k, we redeemed a mortgage of approx 240k and paid my sister her equity share. My husband sold his own property in December 09 so is not a FTB.
I could not get a mortgage from the bank in my name only so my husband had to go on the mortgage as well despite the implications this would have on stamp duty. Our solicitor advised us that the title deeds would be adjudicated as siblings buying each other out apparently bears closer scrutiny from the Revenue so although we considered putting only my name on the title deeds, she advised that this was unlikely to succeed.
Instead she suggested that the transaction be done on the basis that my husband buy a quarter share and I buy the other quarter share. In other words, as I was buying an additional portion of the property I already half owned it should be stamp duty exempt (due to my ongoing FTB status with that property) and the portion my husband was buying should be at the threshold and no stamp duty incurred.
Today, 3 months later, the Revenue have come back to say that as both parties are not first time buyers there is no stamp duty relief.
Do you think we have any grounds upon which to challenge this decision? Is it a case that the fact that I am married to a non FTB was always going to supersede my FTB status on any transactions on this property? If so, I might have a few words for the solicitor…
While it is not a huge amount as stamp duty goes (7% on 250k), it seems like a total swizz to have to pay stamp duty on a property I already half own :-(
My sister and I built a house 5 years ago and we were both FTBs. I got married last year and this Feb. my husband and I bought my sister out of the house. The house was valued at 500k, we redeemed a mortgage of approx 240k and paid my sister her equity share. My husband sold his own property in December 09 so is not a FTB.
I could not get a mortgage from the bank in my name only so my husband had to go on the mortgage as well despite the implications this would have on stamp duty. Our solicitor advised us that the title deeds would be adjudicated as siblings buying each other out apparently bears closer scrutiny from the Revenue so although we considered putting only my name on the title deeds, she advised that this was unlikely to succeed.
Instead she suggested that the transaction be done on the basis that my husband buy a quarter share and I buy the other quarter share. In other words, as I was buying an additional portion of the property I already half owned it should be stamp duty exempt (due to my ongoing FTB status with that property) and the portion my husband was buying should be at the threshold and no stamp duty incurred.
Today, 3 months later, the Revenue have come back to say that as both parties are not first time buyers there is no stamp duty relief.
Do you think we have any grounds upon which to challenge this decision? Is it a case that the fact that I am married to a non FTB was always going to supersede my FTB status on any transactions on this property? If so, I might have a few words for the solicitor…
While it is not a huge amount as stamp duty goes (7% on 250k), it seems like a total swizz to have to pay stamp duty on a property I already half own :-(