Emyr Pierce

Professional Legal Services | Cardiff

Cardiff: 029 2061 6002

  • Facebook
  • Twitter
  • LinkedIn
  • Google+
  • Home
  • About
    • Team
  • Expertise
    • Residential Conveyancing
    • Commercial Property
    • Wills
    • Elderly Client Services
    • Estate Admin and Probate
  • Blog
    • Property Doctor
  • Fee Estimates
  • Quote
  • Contact
You are here: Home / Archives for Equality of Exchange

Oct 22

Swapping homes will not save Stamp Duty

I have finally found a house I wish to buy, the owner of which is keen on buying my own property. If we do a “swap” will I make a substantial saving in Stamp Duty Land Tax?

Sadly the answer is no. It has been many years since the Inland Revenue introduced the rule in which Stamp Duty Land Tax (SDLT) is no longer payable on the “Equality of Exchange” being the term used for the difference between the two sale prices.

Previously, the former Stamp Duty was only payable on the Equality of Exchange, which made exchanges of properties between interested parties a cost-effective and attractive proposition.

When you consider the extent of revenue lost by the Inland Revenue to such transactions this is hardly surprising. A sale of a property at £400,000 would attract tax of £12,000 which, when swapped for a property worth £300,000, the duty of which is £9,000, would have previously resulted in no Stamp Duty payable and a saving of £21,000 as the “equality of exchange” of £100,000 would, of course, have been exempt from Stamp Duty Land Tax.

The current rule, therefore, is that Stamp Duty Land Tax is assessed separately on each property based on the two figures quoted.

Post in: News

Jul 18

Will part exchanging save me Stamp Duty?

I am hoping to part exchange my house for a new one. I have heard that this is a good way of saving stamp duty. Is this true?

Unfortunately it is not true. Some years ago Stamp Duty, as it was then, was only payable on the “Equality of Exchange”. This was the difference between the sale and the purchase prices and proved popular in the last recession when property developers were finding it difficult to sell new properties and the Stamp Duty savings were a popular attraction of part exchange schemes.

The new regulations governing Stamp Duty Land Tax (SDLT), as it is now, has removed this major benefit in the case of part exchange transactions. Stamp Duty Land Tax is payable on the value of the asset being acquired – regardless of whether it is being part exchanged for an existing asset.

Accordingly, SDLT will be payable on properties where the price exceeds £175,000.00 and not on the “Equality of Exchange” between the two part exchange values.

* Emyr Pierce is Managing Partner of Emyr Pierce Solicitors in Rhiwbina, Cardiff, Western Mail Conveyancer of the Year, specialising in Domestic and Commercial Property. Contact www.emyrpierce.co.uk or email law@emyrpierce.co.uk

Post in: News

Newsletter

  • This field is for validation purposes and should be left unchanged.

Recent Posts

  • We are recruiting – Audio Typist
  • Fee Estimates- Uncontested probate cases where all assets are in the UK
  • Welsh Government introduces tax holiday for Welsh homebuyers
  • Supporting our clients through COVID-19
  • Budget reaction

Topics

Anti-Eviction Laws Cardiff Cardiff conveyancing solicitor conveyancing Council Tax Council Tax discount Council Tax exemption covenants Declaration of Trust deposit DIY Will Easement of access Emy Pierce Solicitors Emyr Pierce Emyr Pierce Solicitors Estate Estate Agent Exchange of Contracts Freehold gift Inheritance Tax Intestacy Rules Joint Tenants landlord Land Registry Lasting Power of Attorney Leasehold Leasehold property mortgage application mortgage arrears mortgage repayments neighbours Planning Permission Possessory Title property restrictive covenants Solicitors specialist property solicitors Stamp Duty Tenancy Agreement Tenancy Agreements Tenants in Common Title Deeds Trustee in Bankruptcy Will
    Emyr Pierce Solicitors provides professional legal services to both private and business clients.
    Conveyancing Cardiff | Commercial Property | Privacy Policy | Complaints Procedure | Contact

    1 Heol y Deri, Rhiwbina, Cardiff, CF14 6HA

    Copyright 2019 Emyr Pierce Solicitors