I am trying to calculate if stamp duty is due.
The property is being transferred from two people to one. The property was originally purchased with a joint mortgage as Tenants in Common in unequal shares. 36% and 64%.
The person taking over the property and mortgage is the 64% share holder.
I am being told by the solicitor that chargeable consideration would be calculated as follow:
Cash being paid for the other persons share 35,000
50% of the mortgage debt 115000
SDLT 0% on 125,000 2% on 25,000
I have researched a little and my understanding is:
Cash being paid for the other persons share 35.000
36% of the mortgage debt 82800
I have been looking at "How much is chargeable: Non-cash consideration: Assumption or release of a debt FA03/SCH4/PARA8"
FA03/SCH4/PARA8(1B) ensures that in determining the amount of debt assumed each person’s liability for the debt is taken to be a proportion of the debt corresponding to the share that they own in the property subject to the debt.
A property is owned by V and P in 70:30 shares.
It is transferred to the sole ownership of P subject to a subsisting mortgage.
Assuming V is released from the debt or P agrees to indemnify V there is an assumption of debt by P.
P is treated as assuming debt equal to 70% of the amount owing.
This is because P is treated as owing 30% before the transfer and 100% after it.
(1B) the amount of secured debt assumed shall be determined as if the amount of that debt owed by each of those persons at a given time were the proportion of it corresponding to his undivided share of the property at that time.
Am I missing something?
Any help or advice greatly appreciated.