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Stamp duty on transferring 50% of a property?

What are the stamp duty inmplications of tranfering a joint property to one owner - unconnected

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I have a client who jointly owns four buy to let properties all with mortgages. The parties are unconnected. The market values are £160,000, £120,000, £120,000, £140,000.

My client wants to take over the mortgage and properties by paying his business partner 50% of his equity in the properties.

What amount will my client pay stamp duty on when purchasing the four properties?

He then wishes to set up a limited company and transfer the four properties into a Limited company - will he pay stamp duty on the newly owned element twice?

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By Accountant A
07th Mar 2019 11:20

You need to speak to an accountant - and give them all of the relevant information not just some of it.

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By ireallyshouldknowthisbut
07th Mar 2019 11:33

In short, yes to SDTL (I am sure you can work it out, but do look at multi dwelling relief), yes if you do it like you say, you pay it twice, plus CGT on the way in of course so its a bit of an odd thing to do, not to mention 2*remortgage.

Suggest a property specialist, especially if looking at a limited company. People seem to be opening these up for little reason other than it being 'fashionable' and being sold them by people on the take for fees.

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