Scale 2 fees

Hello.

I have a question regarding fees, in this case scale 2 .

According to your guide and scale 2 fees there is an example as follows:

1. “John Smith transfers a property by gift to himself and Sharon Jones in equal shares. It is worth £200,000. The fee is assessed on half the value of the property (£100,000), and payable under Scale 2.”

However, according to your YouTube video, which also uses an example of one person transferring to 2 people (marriage) completing the AP1 box 4 “Application , priority and fees” the narrator states that where no money                       (consideration) is paid, the FULL market value needs to be entered under “Price paid/value “  in the third column. In the fourth column the applicable fee needs to be entered. THIS BRINGS ME TO MY QUESTION.

Is it right that the full market value in column 3 is inserted  but the fee scale applicable to half of the value is entered into column 4 and if so is it necessary to clarify this somewhere ? For example, the property value is £500,000 and the share is £250,000, the fee scale used for £250,000 is £100, albeit the fee is the same for £500,000?

Thank you.

Regards

Peter
 

Peter - panel 4 should be completed with the Full value and the fee paid based on the share as in half the value if the Transfer is 1 to 2 or 32 to 1 for example.
As we can read the Transfer we can see what 'share' is involved and do the maths to confirm the correct fee has then been paid. It's important to recognise that the 'share' aspect is a maths point only

Thank you, when you say it’s important to recognise that the “share” is a maths point only ? 

Peter - when we assess the registration fee re a Transfer from 1 to 2 or 2 to one it means we divide the full value by two, so base it on half the value/half share
In my experience people are often transferring the legal ownership from 1 to 2 and 2 to 1 and referencing the word 'share' in other ways for example tenants in common/60/40 etc etc but that is irrelevant when assessing the registration fee.
Hence the fee calculation is simple maths 
 

Thank you, I understand.

kind regards

Peter