Stamp duty

P

pollybull

Guest
My 2 sisters bought 2 houses some years ago - they are jointly owned.Both mortgages are in joint names.One house was bought for £37,000(punts) - mortgage almost paid off.The other cost £120,000(punts) - there's €90,000 outstanding on that mortgage.
Both houses are rented and all expenses and profits are shared equally.Both girls do not reside in either house.
Each sister now wishes to take ownership of one of the houses.They have decided which house is going to who. Question - will stamp duty have to be paid and how much? and will capital gains have to be paid and how much?
The girls contacted Revenue - they said they'd pay a lesser amount of stamp duty because they were siblings- they did'nt how much - they were told to look at the web site which wasn't very helpful for this particular situation.Any ideas out there?
 
Thats an interesting one!!

What are the current values of both houses? Thats relevant for stamp duty - on a transfer of a half interest from one to the other, stamp duty would be payable at "half the ad valorem rate" i.e. transfer between related parties attracts a lower rate of duty. There is no relief for exchanges.

I suspect that CGT would be payable.

mf
 
The current value of both in the region of €500,000 - recent valuations.
 
Take half the value of each and transfer to the other. Stamp duty payable at 2% ( half the ad valorem rate of 4%). Take half the outstanding mortgage off the half value of one. ( 250K less 45K). Looks like stamp duty of 5K on one and 4100 on the other.

And I think that CGT will be payable by both on the value being disposed of.

mf
 
Thanks alot for that.Do you know what the rate of CGT will be ? Is it different for siblings.
 
You must log in or register to reply here.
Back
Top