Second home stamp duty rate? update...

Wig

Person A owns a home in her name as her only home for the last 20 years

If A buys (£160K = £80K each) as a joint owner with B without selling her first home and completion is after March 2016

What stamp duty is payable? as it will be A's second home and B's first home.?

Thanks

anselld

The 3% surcharge will apply.

G_M

Either wait till the rules are finalised and published, or assume the surcharge is likely to apply.

Wig

Is it possible to complete on a sale from start to finish now in the next 3 weeks?
Cash buyers sale has been agreed and we are at the appointing a conveyancer stage...

alchemist.1

Possible if you want to forego some of the searches and also dependant on how fast the seller solicitors are. Bear in mind there will be a number of people wanting to complete in the next 3 weeks for the same reason.

davidmcn

Wig wrote: »

Is it possible to complete on a sale from start to finish now in the next 3 weeks?

Possible, yes. Only likely if all parties are sufficiently motivated to get on with it and no complications are encountered.

Wig

Yeah we are not doing any searches, and no survey/valuation will be done.

Baxter100

Reading that consultation document that the government put out, it wouldn't surprise me if the second home stamp duty is fudged a little bit for people in your situation.

Something like the 'higher stamp duty applies to person A but not to person B, and therefore the higher rate of stamp duty is paid on 50% of the value and the normal duty on the other 50%'.

davidmcn

Baxter100 wrote: »

Reading that consultation document that the government put out, it wouldn't surprise me if the second home stamp duty is fudged a little bit for people in your situation.

Something like the 'higher stamp duty applies to person A but not to person B, and therefore the higher rate of stamp duty is paid on 50% of the value and the normal duty on the other 50%'.

I doubt it, given the tenor of the other proposed measures e.g. married couples being treated as one, so spouse A has to pay the extra rate, despite it being their only property, because spouse B already owns property (relies on you knowing what your spouse owns, though I suspect that principle already applies in other taxes?).

Wig

Seeing as they have not yet published the rules for something that is supposed to be introduced in 23 days time...and we have no way to gaurantee it will be completed before April...... and as we are not married.

We have no option but to take advantage of our unmarried relationship and
go ahead as a first time single buyer for one of us, not both.

Unmarried couples get very few rights from the government so it is only right that we take what we can get.

Certainly not going to pay an extra £4,800 to please the chancellor.

It just means that the money will be borrowed from the other, the house will be bought, hopefully improved and sold later hopefully at a profit and then the money repaid.

[Deleted User]

Why not buy it in person B's name and add person A afterwards?