SLDT on exchange of house with my cousin

[AKAN]

Hi

I would like to exchange my house with my cousin's. My house is valued at £150K wheras his is valued at £180K. I will pay him the difference of £30K. As we are related are these considered as linked transactions ?

What is our SLDT liability ? I assume I pay 1% on £180K while he pays 1% on £150K. Please confirm if this is the correct.

The reason why I am posing this question is I have read in this forum somewhere that if the buyer and seller are related then it is considered as a linked transaction and you pay SLDT on the combined value of each transaction . This would imply that we would have to pay 3% each on £330K. That seems totally absurd. Can someone please clarify.

Many thanks in advance.

Asim.

[maths]

What is our SLDT liability ? I assume I pay 1% on £180K while he pays 1% on £150K. Please confirm if this is the correct.

Correct.

The reason why I am posing this question is I have read in this forum somewhere that if the buyer and seller are related then it is considered as a linked transaction and you pay SLDT on the combined value of each transaction . This would imply that we would have to pay 3% each on £330K. That seems totally absurd. Can someone please clarify.

Not linked transactions.

[AKAN]

Thanks Math. Much appreciated for the quick response.

[AKAN]

By the way , math, one other question. Why do they ask in the SDLT1 form if the buyer and seller are connected ?

[section 44]

Perhaps for audit reasons or because connected corporate purchasers are subject to SDLT on not less than the market value of the property.