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Sam, Accountant
Category: Tax
Satisfied Customers: 14196
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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This is about minimising potential stamp duty. My son and

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This is about minimising potential stamp duty. My son and daughter in law have paid off 50% of a flat - the rest mortgaged. They wish to buy a house, but post Brexit the interest in their flat has gone. My wife and I are planning to pay off the remaining mortgage on their flat and either rent it out or bring down my elderly frail parents to live there. My son wished to retain some interest in his flat but this is not a must. What are the stamp duty implications on us buying all/most of the flat and him buying a house. He could gift us his remaining share in the flat. We could look to sell the flat in 3 years if that helps?
Thanks ***** *****

Hi David

Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.

If his name comes off the flat (though sale or gift or a bit of both) then you will pay the additional 3% stamp duty as one would assume you already own property (and clearly will not live here yourself) along with any usual rate of stamp duty arising

The same applies if he remains holding an interest in the flat -

Then you/all of you will have a capital gain position to consider when the property is sold, as it will then have been none of your main residences (and for your son more than 18 months after moving out)

If your son gifts the remaining share of the property then he also has Inheritance tax to consider, should he not survive more than 7 years from the date of making the gift.

Let me know if I can assist further



Customer: replied 1 year ago.
Thanks for the reply. In addition:
If my son retains an interest in the flat will he also be liable for the 3% on his new purchase?
If he gifted us half of the flat would stamp duty only accrue on the remaining 50%


Yes he will I am afraid (so stamp duty accrues on all of you even if he only gifts 50% as he will have a new pucahse too - leaving this property to become the second home)

Even if he did not buy a new place straight away the stamp duty additional charge is applied to the property not the names purchasers/owners

let me know if I can assist further, or if you have all that you need, it would be appreciated if you could rate me for the level of service I have provided (or click accept)



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