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  • FIRST POST
    • strokebow1
    • By strokebow1 11th Oct 16, 11:47 AM
    • 22Posts
    • 6Thanks
    strokebow1
    First Time Buyer Definition Peculiar Question
    • #1
    • 11th Oct 16, 11:47 AM
    First Time Buyer Definition Peculiar Question 11th Oct 16 at 11:47 AM
    Hello there,

    I recently filled out the HMRC first time buyer declaration as part of the ISA scheme. However, upon subsequent careful consideration I must ask, what does this mean?
    I am resident in the United Kingdom for tax purposes or, if not so resident, either perform duties which, by virtue of section 28 of the Income Tax (Earnings and Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the United Kingdom, or I am married to, or in a civil partnership with, a person who performs such duties.

    Not sure why they cant just write this in simpleton form but that for another day.

    Specifically, this is what I am worried about.

    I do not own and have never owned a property anywhere in the world. I dont have a mortgage, my name is not on any deeds etc.
    However, I am married. My wife owns a property solely in her own name.

    Therefore not knowing what the above underlined means, I just want peace of mind to know that all is above board. I presume so but nothing like a second, third and fourth opinion!

    Cheers
Page 1
    • davidmcn
    • By davidmcn 11th Oct 16, 11:51 AM
    • 5,787 Posts
    • 5,536 Thanks
    davidmcn
    • #2
    • 11th Oct 16, 11:51 AM
    • #2
    • 11th Oct 16, 11:51 AM
    The bit you've underlined is just to do with your residency for tax purposes - nothing to do with whether or not you are a first time buyer.
    • pinkteapot
    • By pinkteapot 11th Oct 16, 11:51 AM
    • 6,155 Posts
    • 7,923 Thanks
    pinkteapot
    • #3
    • 11th Oct 16, 11:51 AM
    • #3
    • 11th Oct 16, 11:51 AM
    With regard to the underlined bit you don't need to worry. You are resident in the UK for tax, I assume. If so, everything after "or" (word 11) doesn't matter. The rest of it only applies if you're NOT a UK resident for tax purposes.

    Have you bought or are you buying the property solely in your name? Mortgage and deeds are both in your name only? If your wife will be named then I'm not sure it'd be a first time buyer purchase, as BOTH parties need to be first time buyers (I believe?). People with more knowledge on this will be along soon.
    • strokebow1
    • By strokebow1 11th Oct 16, 11:57 AM
    • 22 Posts
    • 6 Thanks
    strokebow1
    • #4
    • 11th Oct 16, 11:57 AM
    • #4
    • 11th Oct 16, 11:57 AM
    Thanks, that sounds good! :-)
    • Cakeguts
    • By Cakeguts 11th Oct 16, 12:33 PM
    • 2,732 Posts
    • 3,733 Thanks
    Cakeguts
    • #5
    • 11th Oct 16, 12:33 PM
    • #5
    • 11th Oct 16, 12:33 PM
    I believe you are still going to have to pay the extra 3% stamp duty though.
    • G_M
    • By G_M 11th Oct 16, 12:47 PM
    • 41,077 Posts
    • 47,208 Thanks
    G_M
    • #6
    • 11th Oct 16, 12:47 PM
    • #6
    • 11th Oct 16, 12:47 PM
    As a married couple you are considered to be a single unit for the purposes of the FTB ISA scheme.

    So no - you do not qualify.

    The clause you have quoted is not relevant to this.

    However the next clause says:

    I do not own, and never have owned any interest in land,.....
    You have an interest in the land owned by your spouse.
    Last edited by G_M; 11-10-2016 at 1:06 PM.
    • scottishblondie
    • By scottishblondie 11th Oct 16, 2:46 PM
    • 1,971 Posts
    • 1,249 Thanks
    scottishblondie
    • #7
    • 11th Oct 16, 2:46 PM
    • #7
    • 11th Oct 16, 2:46 PM
    As a married couple you are considered to be a single unit for the purposes of the FTB ISA scheme.

    So no - you do not qualify.
    .
    Originally posted by G_M
    I believe eligibility for the HTB ISA is on an individual basis, so if one half of the couple is a FTB they can open a HTB ISA in their name and claim the bonus, though their property-owning spouse obviously cannot.

    However they are treated as a single unit for stamp duty, and so will be liable for the extra 3%.

    Edit: It's number 4 on the "need to know" list
    Last edited by scottishblondie; 11-10-2016 at 2:48 PM.
    • G_M
    • By G_M 11th Oct 16, 8:37 PM
    • 41,077 Posts
    • 47,208 Thanks
    G_M
    • #8
    • 11th Oct 16, 8:37 PM
    • #8
    • 11th Oct 16, 8:37 PM
    I believe eligibility for the HTB ISA is on an individual basis, so if one half of the couple is a FTB they can open a HTB ISA in their name and claim the bonus, though their property-owning spouse obviously cannot.

    However they are treated as a single unit for stamp duty, and so will be liable for the extra 3%.

    Edit: It's number 4 on the "need to know" list
    Originally posted by scottishblondie
    Hmmm. Interesting. You (or rather Martin) may be right, bu I'd be more convinced if I saw this on an official (ie government/HMRC) website.

    The Treasury Document wording is as I quoted above and specifically mentions 'owned an interest in land'.........

    However I'm happy to be corrected!
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