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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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We have been told purchase price ( on contracts ) to buy

Resolved Question:

We have been told purchase price ( on contracts ) to buy sisters 50% share of a recently inherited property (value £200k) should be her share (£100k ) plus 50 % of outstanding debts on the estate and we have to pay stame duty on total amount. Is this correct ?
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.

Hello and thank you for allowing me to assist you.

Expert:  TaxRobin replied 1 year ago.

That is correct. The total value you pay SDLT on (sometimes called the ‘consideration’) is usually the price you pay for the property or land. This also includes transfer of a debt, including the value of any outstanding mortgage.

https://www.gov.uk/guidance/stamp-duty-land-tax-the-amount-used-to-calculate-whats-payable#calculate-the-chargeable-consideration

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Customer: replied 1 year ago.
Its not a transfer of mortgage debt to us it is debts from the deceased estate .Im confused as to why we have to pay stamp duty on the debts of our mothers estate because half of the debts will be repaid by our sister from the money we are paying to her for her share of the property but yet she will not be liable for any taxes and we are effectively paying it on the 100k we paying for her share of the house and paying it on the amount we are paying above that to repay our share of the inherited debts ?
Expert:  TaxRobin replied 1 year ago.

If the transfer is contingent on the debts then it is part of the sale unfortunately.