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bigduckontax
bigduckontax, Accountant
Category: Tax
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I am the seller of a property and the creditor of a mortgage

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I am the seller of a property and the creditor of a mortgage facility on the said property. The terms of the mortgage have not been fulfilled over more than 18 months despite negotiations. If a court order is issued for the repossession of a property from the failed debtor, must I pay stamp duty?

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

No stamp duty is payable under these circumstances.

Customer: replied 5 days ago.
Many thanks Bigduck. Are you able to provide a reference to this information for a solicitor?

As there is no change in fundamental ownership it follows that there is no Stamp Duty liability.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 5 days ago.
Thanks again. I've been waiting for that answer for some time through other channels. That's helped a great deal.

Thank you for your excellent support.

Customer: replied 2 day ago.
May ask something more in this. If the debtor agrees to return the property to the former owner who is also the mortgage lender, without going to court and obtaining a court order is stamp duty still not owing?

If there is no consideration, no.

Customer: replied 2 day ago.
What does consideration mean in this context?
Customer: replied 2 day ago.
I had an unintended use of double negatives. In other words: stamp duty would be owing without a court order.

Consideration is the amount paid for the transaction.

Customer: replied 2 day ago.
Thanks. So, no consideration; no stamp duty, in the case of repossession.

Correct.

Customer: replied 2 day ago.
Many thanks for the advice!

Pleased to have been able to help.