skip to navigationskip to main content

Stamp Duty Help for Family Exchanges

Newsletter issue - April 07.

The rates of Stamp Duty Land Tax (SDLT) were not changed in the Budget. The duty is payable on all homes valued at over £125,000, (or £150,000 in a disadvantaged area), and on all commercial properties valued at over £150,000.

However there was one welcome change for family members who want to exchange properties. Currently when a widowed grandparent living alone in the former family home wants to exchange that large house for a small property currently occupied by her daughter, the total value of both properties is added to together to work out the SDLT rate that will apply.

So where a property worth £300,000 is exchanged for a property worth £220,000, the total value of the properties is £520,000 and the rate of SDLT on both transactions is 4%, giving a SDLT charge of £20,800. After the law is changed in July 2007 there will be a charge at 1% on the acquisition of the property worth £220,000, and a charge at 3% on the acquisition of the property worth £300,000, giving a total SDLT charge for the family of £11,200.

Working with you

Whether you're starting from scratch or have been in business for years you'll benefit from working with Hanleys advice on how to take you to the next level.

fixed-quote-man.jpg

About us

We work closely with our clients and act for a broad range of business....

business-advice-couple.jpg

Get in touch

Simple way to contact us. Just fill in a simple form.

free-consultation-couple.jpg

Our services

Find out details about what we can do
for you.