Stamp Duty - Buying out Partner's share of property

Hi all,

I'm in the process of buying a small property (IP) with my friend. We will have 50% partnership each (tenants in common).
The question is:
If he wants to buy my share after 1 year on then market value,
1. will he be liable to pay the stamp duty for the half portion?
2. Will I need to pay CGT (if any)? If yes, will I be able to claim 50% CGT concession?
3. Is there any setup in this kind of partnership which can facilitate to avoid stamp duty while buying partner's share at a later stage?

Thanks
Sanjay
 
I'm in the process of buying a small property (IP) with my friend. We will have 50% partnership each (tenants in common).
The question is:
If he wants to buy my share after 1 year on then market value,
1. will he be liable to pay the stamp duty for the half portion?
Yes

2. Will I need to pay CGT (if any)?
Yes, IF there has been any CG.

If yes, will I be able to claim 50% CGT concession?
Yes if you keep for 12 months minimum as you intend

3. Is there any setup in this kind of partnership which can facilitate to avoid stamp duty while buying partner's share at a later stage?
Yes. Buy as "joint tenants" and then die. :p Whilst not a good outcome for you (and I would not wish that on anyone) it will avoid your friend having to pay any SD as he gets your share.
 
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