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Where Taxpayers and Advisers Meet

SDLT on a Partial Sale

adamh
Posts:34
Joined:Thu Aug 16, 2012 1:45 am
SDLT on a Partial Sale

Postby adamh » Sat Dec 30, 2017 5:23 am

Hi,

If I sell a 50% share of my house valued at £3 million to my son, who pays £1.5 million for it, how much SDLT will he have to pay?

(He lives here and has no other property.)

SDLT Geek
Posts:232
Joined:Sun Apr 30, 2017 5:45 pm

Re: SDLT on a Partial Sale

Postby SDLT Geek » Sat Dec 30, 2017 9:06 am

£93,750. See the online calculator here: https://www.tax.service.gov.uk/calculat ... ax/#/intro

I am assuming there are no other factors that make the higher rates of stamp duty land tax apply, such as him having a spouse with a property.

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

Re: SDLT on a Partial Sale

Postby RMC » Sat Dec 30, 2017 12:03 pm

You will also have to pay CGT. Calculation is at
https://www.tax.service.gov.uk/calculat ... properties

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

Re: SDLT on a Partial Sale

Postby RMC » Sat Dec 30, 2017 12:11 pm

But PPR CGT exemption applies if the property was also your main residence.

adamh
Posts:34
Joined:Thu Aug 16, 2012 1:45 am

Re: SDLT on a Partial Sale

Postby adamh » Mon Jan 01, 2018 3:19 am

Thanks. It is currently my PPR.

If I actually sell 50% to my son for £1.5m and 50% to my cousin for £1.5m would they pay £93,750 each? Or would it breach the 12% threshold?

adamh
Posts:34
Joined:Thu Aug 16, 2012 1:45 am

Re: SDLT on a Partial Sale

Postby adamh » Mon Jan 01, 2018 3:21 am

(and I move elsewhere)

SDLT Geek
Posts:232
Joined:Sun Apr 30, 2017 5:45 pm

Re: SDLT on a Partial Sale

Postby SDLT Geek » Mon Jan 01, 2018 9:58 am

If your son and your cousin are joint buyers then one looks at the SDLT on the whole £3M as it is a single transaction. If the surcharge is not due the SDLT would be £273,750.

But the surcharge might be due if your cousin has another property and is not replacing his main residence. If so then on a joint purchase by your son and your cousin the SDLT would be £363,750.

Is there a possibility that your son buys a half share in one transaction and your cousin the other half share in a different transaction? Things could be more contentious there as HMRC might say that even with a substantial time interval between, the two purchases form part of a single transaction.

HMRC should not be able to argue however that they are two linked transactions. If it can be established that there are two transactions they should not be linked because your son and your cousin are not "connected persons". If there are separate transactions your son would pay £93,750 and your cousin the same amount or, if he has to pay the surcharge, £138,750.

You say you will move out, but you do not say who is to move in.


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