stamp duty and part-exchange

[ian.shand@virgin.net]

property £625k, owners wish to part exchange with our house on the market at £425k, difference being £200k
how do we stand wrt stamp duty? how much should be paid and be whom?
I realise this has been touched upon recently in another discussion but I would like some up to date advice please.
Thanks

[Ian McTernan CTA]

What is happening to the 200K? If this is included as part of the deal then one party is purchasing the 625K house and the other party is purchasing for 425K, so presumably stamp duty payable on these amounts. The solicitors doing the convenyancing should advise on this and you should ask them.

[paulc]

Providing the documentation is structured correctly, you should get away with stamp duty being paid on the £625k property only (at 4%). That is payable by the purchaser of that property. No stamp duty is payable by the purchasers of the £425k property. It is then for the purchasers to agree between themselves whether the stamp duty saved on the £425 property should be shared between them. As I say though, it is important to get the documentation right to get this treatment

Paul