The following Tax Q&A Produced in partnership with Michael Fluss of Keystone Law provides comprehensive and up to date legal information covering:
For the purpose of this Q&A, we have assumed that:
the property is a dwelling
the interest held by A and B is a freehold interest or a leasehold interest granted for a term of more than seven years
A occupies another dwelling as A’s only or main residence in which A has a freehold or leasehold interest
A and B are not civil partners of each other and/or are separated in circumstances in which the separation is likely to be permanent
A will not acquire B’s interest as part of any business of buying and selling dwellings undertaken by A
the trust to be declared by B in favour of A will be a bare trust
the acquisition by A will complete on or before 31 March 2021
As A’s current share of the dwelling in monetary terms is £225,000, A will need to give consideration of £220,500 to B in order to acquire a 99% beneficial interest in the dwelling. A’s purchase of a further 49% interest in the dwelling will, therefore, entail A purchasing 98% of B’s interest in the dwelling.
Following the relaxation of the Stamp Duty Land Tax (SDLT) thresholds announced by the Chancellor on 8 July 2020, the transfer or grant of a freehold or leasehold interest in a dwelling for chargeable consideration not exceeding £500,000 is not chargeable to
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