• Stamp Duty

    By Guest on 31st Aug 2016

    We have been trying to sell our family home without success. We need to move t be near our son as my husband is terminally ill. To avoid paying the 3% stamp duty up front, only to claim it back later when we do sell our house we are considering buying the second home in our adult son's name (he does not own any property) and he will sign it back to us when we have managed to sell our main house and the second home will be our only residence. Are there are potential problems with this?

  • 1 Answers

    By Guest on 04/09/2016

    There may be Inheritance Tax implications - a gift made within 7 years of death may be treated as a bequest in a will for Inheritance Tax purposes - so this could be a problem if your husband dies before the property can be transferred back to your names. Also, if you have a mortgage it will not be possible as your lender will not allow it.

    Besides these points you would have to trust your son as, if you entered into an arrangement whereby he held the property on trust for you, you would still be liable for the extra stamp duty. You would also have a problem if he got into debt as his creditors could take the equity in the house.

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