Avoiding Stamp Duty on transfer

Discussion in 'Legal Issues' started by jackbak, 9th Jun, 2015.

  1. jackbak

    jackbak Member

    Joined:
    27th Feb, 2012
    Messages:
    847
    Location:
    Melbourne, VIC
    Hi all, I own a business with my father and we are looking at buying our premises. Problem is I am in debt up to my eye balls in IP's but in 12-24 months I should be ok. What I want to do is have my father buy the property now and then I buy/takeover 50% of the property from him once I've paid some debt down. I obviously don't want to trigger a stamp duty event when I buy 50% of the property from my Dad (he will have already paid stamp duty when he purchases the property so it's silly to pay any stamp duty again).

    Can anyone see a way around this? Possibly buy in a company/trust?

    Thanks
     
  2. Corey Batt

    Corey Batt Finance Broker

    Joined:
    6th Apr, 2010
    Messages:
    3,209
    Location:
    Adelaide, South Australia
    Alternatively, why not try to get a suitable property under lease with an option which can be executed up to 2 years away?
     
  3. Terry_w

    Terry_w Member

    Joined:
    19th Mar, 2012
    Messages:
    9,610
    Location:
    Sydney, NSW
    You wouldn't want to buy a commercial property in your own name generally. Look at a discretionary trust where no change in ownership, whether beneficial or legal, would be needed.

    Alternatively a Unit trust or a company where the legal ownership can remain the same but shares or units transferred.
     
  4. jackbak

    jackbak Member

    Joined:
    27th Feb, 2012
    Messages:
    847
    Location:
    Melbourne, VIC
    Definitely something to think about, thanks Corey
     
  5. jackbak

    jackbak Member

    Joined:
    27th Feb, 2012
    Messages:
    847
    Location:
    Melbourne, VIC
    Great, thanks Terry.