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    • Strebor123
    • By Strebor123 14th Mar 17, 1:41 PM
    • 68Posts
    • 17Thanks
    Strebor123
    Stamp Duty - Additional Rate
    • #1
    • 14th Mar 17, 1:41 PM
    Stamp Duty - Additional Rate 14th Mar 17 at 1:41 PM
    Hi,

    I'm having a bit of trouble getting my head around the new stamp duty rules and wondered if anyone could clarify.

    I want to buy a home as my main residence and will be selling my current house. I'd like to buy somewhere with my Dad but not sure it's going to be feasible.

    My Dad already owns other property. If I wanted to buy a house for £140K and he wanted a 10% share (£14K) would we need to pay the higher rate of stamp duty?

    In a different scenario - If I bought the house on my own and then, later on, sold 10% of the house to my Dad - what stamp duty (if any) would need to be paid?

    Thanks in advance.
Page 2
    • booksurr
    • By booksurr 14th Mar 17, 7:04 PM
    • 3,614 Posts
    • 3,993 Thanks
    booksurr
    Eh? I thought we had just established that you didn't need to pay the higher rate?
    Originally posted by davidmcn
    eh?

    2.4.2 establishes that:
    A) the purchase is a single transaction for joint purchasers (even if it was "split" it would be a linked transaction) with a (total) chargeable consideration >40k

    B) we will assume it is not a leasehold property

    C) the father owns multiple properties at least one of which we will assume is worth >40k

    D) the purchase is not a new main home for father

    so father causes the joint purchase to be a higher rate transaction, have you perhaps overlooked the next para?
    3.4.3 ......It does not matter how small the interest of a particular purchaser is, the test is applied in the same manner.
    Last edited by booksurr; 15-03-2017 at 10:58 AM.
    • davidmcn
    • By davidmcn 14th Mar 17, 8:12 PM
    • 5,266 Posts
    • 4,929 Thanks
    davidmcn
    have you perhaps overlooked the next para?
    Originally posted by booksurr
    No, I was possibly misinterpreting the advice (I think the actual legislation is clearer on this). But point taken.
    • Strebor123
    • By Strebor123 15th Mar 17, 10:19 AM
    • 68 Posts
    • 17 Thanks
    Strebor123
    Eh? I thought we had just established that you didn't need to pay the higher rate?
    Originally posted by davidmcn
    Sorry I seem to be getting confused. I have read 3.42 and here is what it says

    "Where a transaction is entered into by joint purchasers the higher rates will apply
    if the transaction would be a higher rates transaction for any of the purchasers
    considered individually39. So if there are two individual purchasers and
    Conditions A to D are all met for one of them only, the transaction will be charged
    at the higher rates. "

    My understanding of that is that if my Dad was purchasing the property on his own, he would need to pay the higher rate and so if we purchase somewhere together we would be liable for the higher rate.

    Have I got that wrong?

    Thanks for the advice so far.
    • booksurr
    • By booksurr 15th Mar 17, 11:01 AM
    • 3,614 Posts
    • 3,993 Thanks
    booksurr
    My understanding of that is that if my Dad was purchasing the property on his own, he would need to pay the higher rate and so if we purchase somewhere together we would be liable for the higher rate.

    Have I got that wrong?
    Originally posted by Strebor123
    I would agree with you that it will be a higher rate transaction where father is a joint purchaser as he already owns property that means his involvement would be an additional property for him which falls within one or more of the 4 conditions A - D that trigger the higher rate
    • davidmcn
    • By davidmcn 15th Mar 17, 11:14 AM
    • 5,266 Posts
    • 4,929 Thanks
    davidmcn
    I would agree with you that it will be a higher rate transaction where father is a joint purchaser as he already owns property that means his involvement would be an additional property for him which falls within one or more of the 4 conditions A - D that trigger the higher rate
    Originally posted by booksurr
    Yes, ignore my earlier post. You get the advice you pay for around here...
    • Strebor123
    • By Strebor123 15th Mar 17, 11:32 AM
    • 68 Posts
    • 17 Thanks
    Strebor123
    Yes, ignore my earlier post. You get the advice you pay for around here...
    Originally posted by davidmcn
    Lol. I got the answer to the question in the end anyway so thanks.
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