Two Tenants in Common, moving to One Owner, SDLT question

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    #1

    Two Tenants in Common, moving to One Owner, SDLT question

    Hi,

    Situation: Person A and B are Tenants in Common of property Y

    B selling his share to A, so that A becomes the sole owner of Y.

    I've got the Land Registry forms figured out, now I'm looking at the SDLT.

    NB: Consideration amount is under the threshold so no Stamp Duty due, but we have to fill in SDLT anyway, to get the certificate.

    For Vendors (questions 34 onwards): Do I put Person A and Person B, or just Person B?
    That is: Does Vendors mean all current owners, or does it just mean the person selling their share?

    Purchaser is obviously just Person A.

    Thanks in advance for any hints offered.
    Tags: sdlt
    #2
    As this is a transaction I think you put person B in as Vendor and person A as Purchaser - but you have to describe what is being transferred as a share in the property.
    If there is a mortgage then the Vendor's proportion of the mortgage debt has to be added in and it is then both "cash" and "debt" as the type of consideration.
    RICHARD WEBSTER

    As a conveyancing solicitor I believe the information given in the post to be useful (provided it relates to property in England & Wales) but I accept no liability except to fee-paying clients.

    Comment

      #3
      Thanks Richard.

      Where on the form should it be noted that what is being transferred is a share of the property? There doesn't seem to be anywhere to say that. Unless I make it part of Q28 'address of land'?

      Also, on Q59 'Purchaser and vendor connected': if Person A and B are ex-boyfriend/ex-girlfriend (but were never married) are they still 'connected' as far as SDLT is concerned? I'm guessing 'yes'.

      Comment

        #4
        Question 3 - "Interest transferred or created" - use OT. In 5 where the question is about anything affecting value of interest transferred - you can put "half share transferred" or if there is a mortgage "half share transferred subject to mortgage".

        Don't put it in Q28.

        I am assuming no mortgage. Remember that SDLT is payable on the proportion of debt transferred so this can sometimes put people in to the tax bracket e.g. House worth £300K. £250K joint mortgage. One pays the other £25K for half share of equity. £1500 SDLT payable - £25K half share + half of mortgage debt (£125K) = £150K!

        Q59 - arguable but to be on safe side I would say you were connected.
        RICHARD WEBSTER

        As a conveyancing solicitor I believe the information given in the post to be useful (provided it relates to property in England & Wales) but I accept no liability except to fee-paying clients.

        Comment

          #5
          Thanks, I see.
          Yep no mortgage in this case but that bit may be of use to other people.

          Comment

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