Property transfers

I deal with the tax and accounting affairs of a family. In February 2008 a husband and wife sold their jointly-owned half share of a commercial property to a limited company of which they are the shareholders. In March 2008 the husband's sister — who is not involved with the company — transferred her half share to the company. The consideration paid by the company for each half share was £185 000.

My question is regarding the amount of stamp duty payable on the transactions. Is this 1% or are the transactions linked meaning that the liability will be at 3%?

Readers' advice is welcomed.

Query 17 191  — Dutiful.

Reply by Philatelist:

The actual price paid by the company for the husband and wife's half share is probably irrelevant. If as seems likely they control the company they are connected with...