day-break Posted January 25, 2017 Share Posted January 25, 2017 If there are 2 houses both purchased and mortgage free, can the owners just swap deeds over and houses instead of buying and selling first? Link to comment Share on other sites More sharing options...
scottf Posted January 25, 2017 Share Posted January 25, 2017 I would say that stamp duty would still be payable? Link to comment Share on other sites More sharing options...
top4718 Posted January 25, 2017 Share Posted January 25, 2017 I would say that stamp duty would still be payable? Payable on what though if no money changes hands? Link to comment Share on other sites More sharing options...
TimmyR Posted January 25, 2017 Share Posted January 25, 2017 I would say that stamp duty would still be payable? Purchase price is zero so no stamp duty needs to be paid. You would need to pay a solicitor to do the deed swapping though I should imagine. Link to comment Share on other sites More sharing options...
truman Posted January 25, 2017 Share Posted January 25, 2017 Just found this on Moneywise "Although no money changes hands, stamp duty land tax will be due on the market value of both properties swapped, because 'consideration' in the form of the property values is changing hands," explains Frank Nash, tax partner at accountancy firm Blick Rothenberg. Provided both properties have always been used as the main home, there will be no capital gains tax to pay. But Nash warns: "If a home had been previously let, some CGT might be payable." Talk to a solicitor... Link to comment Share on other sites More sharing options...
day-break Posted January 25, 2017 Author Share Posted January 25, 2017 Truman....Is that English law? Link to comment Share on other sites More sharing options...
ttparsons Posted January 26, 2017 Share Posted January 26, 2017 You don't need a solicitor (though it might be advisable to use one, get the searches done, complete the sellers enquiry forms, have a survey etc. to avoid surprises and unexpected issues later.). Use land registry forms found at https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1 and use the land registry guidance. You will have to pay the relevant fees and taxes. Link to comment Share on other sites More sharing options...
truman Posted January 26, 2017 Share Posted January 26, 2017 Truman....Is that English law? Blick Rothenberg are a firm of London based accountants so I would say yes it's English law. Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted January 26, 2017 Share Posted January 26, 2017 I would say that stamp duty would still be payable? No. SD does not apply to property. ---------- Post added 26-01-2017 at 15:23 ---------- "Although no money changes hands, stamp duty land tax will be due on the market value of both properties swapped, because 'consideration' in the form of the property values is changing hands," explains Frank Nash, tax partner at accountancy firm Blick Rothenberg. Provided both properties have always been used as the main home, there will be no capital gains tax to pay. But Nash warns: "If a home had been previously let, some CGT might be payable." Yes. The only 'exchange' transactions outside SDLT are: a. those between connected parties (= family members, companies in dame group, etc.); and b. those involving a developer taking P's old property in part-payment for a new property. Link to comment Share on other sites More sharing options...
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