Stamp Duty - Jointly Owned Residential Property - One Getting Out

[G]

A situation similar to some other queries posted here, but not sufficiently so for me to be sure of the correct answer.

Consider a residential property that is owned by more than one person, perhaps because they were left it jointly in a will, or maybe because of a previous relationship.

Then suppose one of the owners wishes to be bought out so they can move off and purchase elsewhere.

Is stamp duty payable on the transaction, given that the property share is going to someone that already owns part of the property anyway ?

If it is, then is it calculated on the total value of the property, or just the share being transferred ?

What percentage / fixed rate would those involved be facing ?

Thanks in advance for any advice.

[Ian McTernan CTA]

Stamp duty would be payable on the value transferred, and this would be determined using the value of the part being transferred as stated in the transfer deed. The rate of stamp duty would be determined by the value transferred (between 0% and 4% at present). Given enough value, there are arrangements (must be over £500K) to mitigate the stamp duty.

More importantly, CGT may be payable by the seller dependent on the circumstances.

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

[G]

Thank you.

For both sets of folk I know of in this situation, I think that, since the tax would only be levied on the part being transferred, that they may not be affected by stamp duty anyway. I have passed on your advice.

The comment about CGT was interesting though. Could you outline basic on that please ? Or a link to an, 'easy to understand and find the answer you need "idiot's guide"' ?