Hi all, thanks in advance for your time.
I am currently buying a property to live in with my fiance but we are subjected to Higher tax 3% stamp duty because I have a joint BTL flat property with my brother.
This BTL property was an investment between 5 family members 6 years ago but only has mine and my brothers name on the property deed and mortgage. We have a Declaration of Trust where if we were to sell the property, then everyone will get their contribution back (maybe some extra profit) based on how much they've put in before and after the purchase of the property.
My main question is, if I were to do a Transfer of Equity and remove my name off the property deed & mortgage with my brother being the sole owner, would this be enough to qualify me and my fiance on not paying the higher stamp duty? Even though I still have a Declaration of Trust on that property where I have an unequal share of that property?
Based on the Declaration of Trust, I have contributed £35k which is my 'share', do I even need to bother with the transfer of equity as my share is worth less than £40k? When we calculate each family member share, we base it on this excel sheet we keep updated so I don't know if the tax man will like it or not.
Kind regards,
Zach.
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