If you buy a house by means of a part exchange, do you pay stamp duty on the cash value only?

by , 18 Oct 2010Open Question

We are considering a part exchange sale of our house to the owner of the house we would like to buy. We would offer the title deeds to our house + cash to the value of the house we want. Do we then pay stamp duty on the cash amount (under ?250,000 threshold) or the total 'sale' value (which would be over ?250,000 and therefore subject to 3% stamp duty)??

Answers

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Hi,

I think you'll need to chat to the solicitors doing the conveyancing to see if it's possible and to make sure the contracts are correctly worded!

In the 2003 SDLT bill, part exchanges can be exempt from stamp duty if you're exchanging for a new build house that's at a higher value than your current one. Check out:

http://www.taxationweb.co.uk/stamp-duties/stump-duties/stamp-duty-land-tax-a-beginners-guide.html

Also, HMRC have a telephone line for Stamp Duty and Land Tax related queries which you may find helpful:

Stamp Taxes Helpline, 0845 603 0135

by G-Man, 18 Oct 2010

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