Mr Blue has a house with a market value of £600,000.
Mrs White has a house with a market value of £700,000.
They exchange with Mr Blue paying Mrs White £100,000.
The chargeable consideration on the acquisition by Mr Blue is
£700,000.
The chargeable consideration on the acquisition by Mrs White
is £600,000.
Mr Brown has a piece of freehold land with a market value of
£500,000.
He exchanges this with Mrs Green who grants him a 50-year
lease over office premises at an annual rent. No premium is paid.
The chargeable consideration on the acquisition by Mr Brown
is the net present value of the rent payable.
The chargeable consideration on the acquisition by Mrs Green
is £500,000.
Mother and father own property A worth £250,000.
Their son and his wife own property B worth £120,000.
It is agreed that the parties will swap properties and so
stamp duty land tax is due on the market value of each property
passing.
The chargeable consideration on the acquisition by the son
and his wife is £250,000, so tax is due at 1% on this sum.
The chargeable consideration on the acquisition by the mother
and father is £120,000, so no tax is due as the consideration
is below the SDLT threshold.
Note
If the effective date of the transaction was before 19 July
2007, as the parties are connected the transactions are treated as
linked under FA03/S108 and the rate of tax payable is calculated by
aggregating the values of the two properties.
This means that the
