MSE News: Autumn Statement 2015: Stamp duty hike on buy-to-let and second homes

AdrianC

From that Paul Lewis blog post...

However, the final rules may change after the consultation and all are subject to parliamentary approval.

LHW99

So if one already jointly own a home with a child, or other person (with their own home) who is not a spouse / civil partner, and that other person then wishes to buy the remaining share.
Do they pay the additional duty on the whole of the deemed value of the property, or on the proportion they do not already own, or on the agreed amount they will pay??

adonis10

What about the following scenario?

Person a wholly owns a property and wants to buy with person b, who doesn't own anything. Person b buys the new property and then they decide that they want to be joint owners so person a is added to the deeds.

Thoughts on the possible sdlt implications when ownership goes joint?

Azure11

booksurr wrote: »

my "problem" is that other people reading this thread will be misled by your use of certain words.

if you were actually "developing" then you cannot be subject to the CGT limit as you state

if you were in fact merely owning and living in one house at a time, "doing it up", selling and then repeating it is possible you were entitled to private residence relief and therefore exempt CGT, in which case mention of the CGT threshold is irrelevant
however if you lived in one place whilst doing up a second place and believe you have the CGT threshold to play with you are wrong as that is property developing and is subject to income tax not CGT

Guilty m'lud to the misuse of words. CGT mention was for investment properties that were rented out as well.

Regardless of your clamping down on my activities, there do seem to be a lot of situations that might be deemed as unfairly being subject to the extra tax, and some that might escape using certain loopholes. Let's hope they get it all right before April.

actOn

I've got a similar question to adonis10, have read the Paul Lewis article but feel I fall between the 2 scenarios he describes:

If you buy a home to live in but for some reason cannot or do not sell your previous residence at the same time, SDLT2 will be charged.

AND

Someone who owns a home they live in and also owns a second home - a holiday home or weekend retreat for example or a property they rent out - will not pay SDLT2 if they sell the home they live in and buy another which they then live in

Myself and partner lived in my house but moved away for work so are now renting, because of this I have let my property out. We are now looking for a property to buy together to live in, but was intending to keep the other house in my name and transfer it to a BTL mortgage. Would we/I be subject to SDLT2?

When are the government intending to clarify their meanings on the deferent cases?

AdrianC

actOn wrote: »

I've got a similar question to adonis10, have read the Paul Lewis article but feel I fall between the 2 scenarios he describes:

If you buy a home to live in but for some reason cannot or do not sell your previous residence at the same time, SDLT2 will be charged.

AND

Someone who owns a home they live in and also owns a second home - a holiday home or weekend retreat for example or a property they rent out - will not pay SDLT2 if they sell the home they live in and buy another which they then live in

Myself and partner lived in my house but moved away for work so are now renting, because of this I have let my property out. We are now looking for a property to buy together to live in, but was intending to keep the other house in my name and transfer it to a BTL mortgage. Would we/I be subject to SDLT2?

When are the government intending to clarify their meanings on the deferent cases?

I don't see how that falls between the two scenarios - it is squarely the first.

kingstreet

cascader wrote: »

Hi I'd appreciate some clarification please. We own and live in our small 2 bedroom house with a tiny mortgage of £10,000 and are hoping to buy a new build to live in which is currently £320,000. The new build should be completed in August. So exactly what stamp duty would I pay? We are going to live in the new build and would probably let out our existing home we currently live in.

It depends on when you exchanged contracts?

If it was before 25/11/15 the old regime will apply.