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The happy couple

11 March 2014
Issue: 4443 / Categories: Forum & Feedback , stamp duty land tax , Investments , Land & property

A husband and wife own a property as tenants in common but plan to sell to a new limited company

My clients are a husband and wife who own a property in equal shares as tenants in common. For commercial reasons their plan is that the property should be sold to a new limited company at the current market value of £350 000. Stamp duty would be charged at 3% resulting in a liability of £10 500.

It occurred to me that the husband could sell his half interest in the property to the limited company on one day and his wife could then sell her half interest to the company on the next day (or later).

If they did this would this represent two separate transactions? Furthermore and if that were the case I presume that the stamp duty would then be charged at 1% on the separate half shares which would each be valued at say £175 000.

This would...

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