We currently own a flat worth £105,000 outright, and want buy a home for approx £170,000 whilst keeping our original flat to rent out.
It appears we will be stung by £6,000 in stamp duty, which is a huge chunk for us (particularly as my wife is a first time buyer!) Are there any ways to minimise this? One slightly out of the box thought I had was this: -
When purchasing our £170,000 property, to sell our £105,000 flat for a nominal fee to a family member temporarily. Then a few months later buy back the property for the same nominal fee, presumably incurring 2nd home stamp duty at 'market value' rate, which would come to £3,150. If this is feasible we would £2,850 minus any mandatory legal fees involved with completing the transactions.
Is this a crazy thought? Or are there any other possible ways to keep the stamp duty cost down?
Thanks,
Martin
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