Q&As

Is a bank required to pay stamp duty land tax and submit a return when it sells a property following repossession? Is the position the same when a bank exercises its right to staircase from 50% shared ownership to 100% shared ownership simultaneously on completion of the sale to the buyer so that it sells 100% of the property to the buyer? The chargeable consideration for the staircasing is payable by the buyer at completion and there is no contract between the bank and the housing association.

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Produced in partnership with Sean Randall of Blick Rothenberg
Published on LexisPSL on 05/12/2018

The following Tax Q&A produced in partnership with Sean Randall of Blick Rothenberg provides comprehensive and up to date legal information covering:

  • Is a bank required to pay stamp duty land tax and submit a return when it sells a property following repossession? Is the position the same when a bank exercises its right to staircase from 50% shared ownership to 100% shared ownership simultaneously on completion of the sale to the buyer so that it sells 100% of the property to the buyer? The chargeable consideration for the staircasing is payable by the buyer at completion and there is no contract between the bank and the housing association.

Is a bank required to pay stamp duty land tax and submit a return when it sells a property following repossession? Is the position the same when a bank exercises its right to staircase from 50% shared ownership to 100% shared ownership simultaneously on completion of the sale to the buyer so that it sells 100% of the property to the buyer? The chargeable consideration for the staircasing is payable by the buyer at completion and there is no contract between the bank and the housing association.

From the description of the transaction in this Q&A, the method being used by the bank to exercise its security is the exercise of a power of sale. That method involves the borrower (in default) being required to transfer the property directly to a third party nominated by the bank and the sale proceeds being held by the bank on trust for the benefit of the borrower’s

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