avoiding stamp duty via a leasehold sale

[andrewkb]

Is it possible to avoid house purchase stamp duty by buying a house as a leasehold property and then the vendor selling the lease to the purchaser at a nominal sum at a later date e.g. £1?

[Ian McTernan CTA]

I'm not sure exactly how this would work- presumably the lease would be for a short term? Stamp duty is applicable to leases (I think- not my field).

Also not sure why the vendor would want to do this, and if they are a connected person (family mainly) then market value would be substituted for CGT purposes.

Pretty sure there is some legislation covering this but as I said, not my field.

Ian McTernan CTA
Mcternan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com

[paulc]

It is most unlikely this would work. Stamp duty is payable on leases. There are schemes involving using leases to reduce stamp duty but they are far too complex for the average house purchase

Paul