Avoiding Stamp Duty
#1
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Avoiding Stamp Duty
Wondering if anyone could help out here with some advice.
The situation is my nan is selling her house and will be buying into my mother's place. This will therefore require her name on the deeds, plus she will be transferring money to my mother, half the value of the house.
Will this incur stamp duty and any other costs ? If so, is there any way to get around this ?
I managed to get away with it when my Ex moved out and the house was transferred into my name, as she was deemed a commonlaw wife.
Thanks,
Darren
The situation is my nan is selling her house and will be buying into my mother's place. This will therefore require her name on the deeds, plus she will be transferring money to my mother, half the value of the house.
Will this incur stamp duty and any other costs ? If so, is there any way to get around this ?
I managed to get away with it when my Ex moved out and the house was transferred into my name, as she was deemed a commonlaw wife.
Thanks,
Darren
#2
Why bother putting her name on the deeds , this may give rise to stamp duty if over £60k - just gift the money and there's no IHT implications if she survives 7 yrs, and no stamp duty.
Why not be happy with a private agreement.
Why not be happy with a private agreement.
#4
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MarkT : Ideally, that'd be the best thing to do, but I think my nan's a bit funny and wants her name on the deeds to prove her money's going somewhere. Nothing like a trusting family hey.
Bloke : Just spoken to my ex and apparently we were adviced that because we had lived together for a certain length of time we were classed as commonlaw H&W. She still had to pay stamp duty on her new place she bought though - oops!
Bloke : Just spoken to my ex and apparently we were adviced that because we had lived together for a certain length of time we were classed as commonlaw H&W. She still had to pay stamp duty on her new place she bought though - oops!
#5
"just gift the money and there's no IHT implications if she survives 7 yrs"
if she gifts the cash then lives with the person who got the house she's into reserved benifits land and not as IHT clever as is suggested.
if she gifts the cash then lives with the person who got the house she's into reserved benifits land and not as IHT clever as is suggested.
#7
How much cash and what is the value of the house?
As Tiggs says - gifting the cash and living in the house is known as a gift with reservation - The taxman doesn't have to prove it - He assumes it is and you have to prove it isn't
As Tiggs says - gifting the cash and living in the house is known as a gift with reservation - The taxman doesn't have to prove it - He assumes it is and you have to prove it isn't
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#9
"Who mentioned what the cash was for ?"
no one...and no one cares.
i the eyes of the CTO a gift is a loss to the estate...has a loss occoured...yes, the cash has gone. has this resulted in an ongoing benifit? yes- she now lives in a house thats not hers for free........you think you can seperate the two actions?
T
no one...and no one cares.
i the eyes of the CTO a gift is a loss to the estate...has a loss occoured...yes, the cash has gone. has this resulted in an ongoing benifit? yes- she now lives in a house thats not hers for free........you think you can seperate the two actions?
T
#11
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The one thing you have to remember when dealing with the Inland Revenue. Unlike in Law, the burden of proof is upon the taxpayer i.e: you are guilty until you prove you are innocent
Therefore it becomes a situation whereby you need to figure out the route which results in the smallest tax bill, as there WILL be one.
Therefore it becomes a situation whereby you need to figure out the route which results in the smallest tax bill, as there WILL be one.
#12
Yes that's all very clever & correct but without further info I think it was the best advice - her estate will probably be below the IHT threshold whenever she checks out anyway and the question was how to avoid the stamp duty.
#13
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Thanks for the info chaps.
It's really a matter of trying to avoid any sort of costs going into the coffers of the government really, or reducing it to a minimum.
It really seems like daylight robbery that in such a setup the government somehow gets a big wedge of money in a situation that really shouldn't warrant them getting a penny.
I can understand they may be guarding against persons who may abuse the system, but this surely isn't.
It's really a matter of trying to avoid any sort of costs going into the coffers of the government really, or reducing it to a minimum.
It really seems like daylight robbery that in such a setup the government somehow gets a big wedge of money in a situation that really shouldn't warrant them getting a penny.
I can understand they may be guarding against persons who may abuse the system, but this surely isn't.
#14
unfortunately you still have to deal with another set of daylight robbers for the transfer of equity - look at £300.00 for an office junior on £6.00 and hour to do two hours work and a solicitor to sign the papers
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