Enhanced SDLT when buying out co-owner

[New7987]

Hello all

Trying to make sure I get this right before making a big decision.

I live in my partners house which I do not own but I am on the mortgage (JBSP)

I also own two properties (property A and property B)

Both properties I own are let. Property A is 100% mine, property B is owned 50/50 with my brother. Both properties were subject to enganced SDLT when bought.

My brother no longer wishes to be a landlord and wants rid of property B. To make matters worse, I have recently renovated property A and would like to sell. I do not want to sell both properties as I would like to keep a property so not to be off the "ladder".

My question:

If I sell my property A (first) which is 100% mine and then buy my brothers share of property B, would I be liable for SDLT on his half? His half is circa £125k with £95k mortgage (so he has rouguly £30k equity) with me taking on his half of the mortgage.

I'm guessing the chargeable consideration would be £125k but the real question is, if I only owned half a house (half of property B) at the time of "purchase", would buying my brothers half of the same property (property B) trigger enhanced SDLT. The half or buyout would be purchased to continue to let the property (though if I ever needed the property, I could look to move in.

Thank you for any help you can offer.

[AGoodman]

Yes, the chargeable consideration would be £125k but no, you don't have to pay any additional rate SDLT as you only have an interest in one property:

"Condition C is that at the end of the day that is the effective date of the transaction—(a)the purchaser has a major interest in a dwelling other than the purchased dwelling,"

So, no SDLT if it is exactly £125k or less. 2% on the excess.

[New7987]

Thank you