stamp duty on buy out

G

geri

Guest
three years ago my self and another person bought a second hand house for 213,000. Stamp duty at the rate of that time was paid. Everything was 50/50 and both names are on the deeds and mortgage. Now three years on, the house is worth 350,000, and one of us is buying out the other ones half. What if any are the implications of Stamp Duty for the buyer? Will there be anything due?
Appreciate any info...
 
M

mf

Guest
My understanding.

Yes- there will be stamp duty payable. On a straighforward sale, purchaser is paying 175K ( half of 350k) and stamp duty is payable at 4% - 7K.

However, as there is a mortgage involved if the purchaser takes the half interest subject to half the mortgage ( e.g. 175K less half mortgage (say half 200K = 100K) then the purchase price is effectively 75K which is below the exemption figure of 127.5K. But the mortgagee ( lending institiution) must agree to this, must agree to release the vendor and joint mortgagor of their obligations and must join in the deed.

Talk to your own solicitor or call the revenue at 1890 482582 - they are very helpful.

mf
 
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