Stamp duty whats correct? And what would you do?
Hi all. I've googled and reached out to a unbiased financial firm (no reply) and I dont know what's best. Sorry its long but I don't want to drip feed
I've lived in my fathers house for 10 years. I also own my own house but now my adult child lives there. I wont move her out and sell it.
My father wants rid of the house o love in so I'm going to purchase it off him. He is offering it at 1/3rd off the market value. He is also planning to gift all his children a sum of money (I understand this could be subject to inheritance tax if he passes in 7 years)
I understand i will pay stamp duty as its a second home. What I cant get a solid answer is the stamp duty paid on the surveyors valuation? (Lets say 300k) Or what i pay at reduced amount? (200k)
If it is paid on what I pay for it. (I will be getting a mortgage) do I tell my father to keep the cash (let's say 50k) and knock off the price. So the value i purchase it for is now 150k.
What will I pay stamp duty on? I need to know before I decide as I would like a smaller mortgage but if the HMRC ask for it on the surveyors value. I would need the cash to pay the 20k stamp duty 14 days after completion. If its 150k I only need 5k.
I've been told conflicting information. Does anyone experienced this and what stamp duty would I pay?
Do I throw all the money in and get a smaller mortgage cause dont worry you will only pay a small stamp duty?
Or no! Get a mortgage for the 200k and hold back cash as the stamp duty will be based on the surveyors value.