Avoiding +3% Stamp Duty

pathtofreedom

Depending on where this other house is, has it increased in value much? Just as they might get hit for capital gains when they sell it to the friend or another person too. Just something else to bare in mind.

G_M

the new SDLT is not just about BTL.

It's about people owning 2 properties. And clearly your partner will own (jointly) 2 properties.

booksurr

kbutler321 wrote: »

It is just we fall in the grey band of those affected by new stamp duty, as we are not buying to benefit from buy to let (as we dont have one - their friend is living in the house, but my partner receives no rent / benefit, but cannot be removed from mortgage without putting their friend in a difficult position) nor are we rich enough to have a 2nd home! So we don't feel we are one of those that the Government are trying to penalise!

no grey area at all. Your partner owns a second property which is all that matters for the tax, irrelevant if it is BTL or a second home.
He is deliberately deciding to have his cake and eat it therefore should be taxed for that decision

kbutler321 wrote: »

So while I thank you for your reply, please consider some peoples real barriers. I am a genuine person trying to find ways around the stamp duty which I will be penalised for (when if you consider our situaton, neither myself or my partner benefit from as we don't see a penny from the other property, nor does it part their bank account).

you said above he wishes to retain ownership so he gets his share when it is sold, that makes him a real person who is genuinely interested in maximising their money

lovinituk

My understanding is that if you are replacing your main residence, the increased SDLT does not apply.

My wife and I live in a house in just my name. We rent out a flat that is just in my wife's name. When we sell the house and buy a new one it will be in joint names. Everything I have read seems to indicate that we won't pay increased SDLT because we are replacing our main residence.

Am I wrong?

davidmcn

lovinituk wrote: »

My understanding is that if you are replacing your main residence, the increased SDLT does not apply.

My wife and I live in a house in just my name. We rent out a flat that is just in my wife's name. When we sell the house and buy a new one it will be in joint names. Everything I have read seems to indicate that we won't pay increased SDLT because we are replacing our main residence.

That's right (as far as we know so far).

But quite different from the OP's position.

lovinituk

davidmcn wrote: »

That's right (as far as we know so far).

But quite different from the OP's position.

They are currently living together in her property, looking to add him to the joint property on the new main residence. The only difference I can see is they are not married whereas I am.

Am I being thick or is this not the essentially the same scenario?!

lovinituk

booksurr wrote: »

it isn't

you start with 2 and end with 2, and crucially yours is a home for home replacement of the main residence. Marriage is irrelevant.

"they" (ie he) start with 1 and end with 2, precisely the scenario designed to "punish" people who can afford to increase their property portfolio.

But my wife is starting with 1 and will end with 2 so why is she not being "punished"? I'm still confused!

franklee

lovinituk wrote: »

But my wife is starting with 1 and will end with 2 so why is she not being "punished"? I'm still confused!

Well I don't know, perhaps being married makes a difference or perhaps she will be caught? I think they must be counting couples as one unit as otherwise a husband and wife could buy a home each and not pay the extra tax and IIRC that's not allowed. I guess we really need to wait for the details.

scottishblondie

lovinituk wrote: »

My understanding is that if you are replacing your main residence, the increased SDLT does not apply.

My wife and I live in a house in just my name. We rent out a flat that is just in my wife's name. When we sell the house and buy a new one it will be in joint names. Everything I have read seems to indicate that we won't pay increased SDLT because we are replacing our main residence.

Am I wrong?

I'm sorry but I think the other posters are wrong because they are misunderstanding what you are saying. You currently own 1 property on your own, and your wife owns 1 property on her own. You both currently live in your property. You are planning to sell your property and buy a new one in joint names, thereby replacing your main residence but not your wife's. As she is not replacing her main residence, you will be liable for the 3% surcharge.

Just because your wife lives in your current property doesn't make it her main residence because her name is not on the deeds, it seems. I actually queried this situation in the consultation period (we live in a house I own, fianc! has his old flat he rents out), and as a result of what I was told I am having my fianc! added to the deeds of my house to avoid just this situation in the future.

lovinituk

scottishblondie wrote: »

I'm sorry but I think the other posters are wrong because they are misunderstanding what you are saying. You currently own 1 property on your own, and your wife owns 1 property on her own. You both currently live in your property. You are planning to sell your property and buy a new one in joint names, thereby replacing your main residence but not your wife's. As she is not replacing her main residence, you will be liable for the 3% surcharge.

Just because your wife lives in your current property doesn't make it her main residence because her name is not on the deeds, it seems. I actually queried this situation in the consultation period (we live in a house I own, fianc! has his old flat he rents out), and as a result of what I was told I am having my fianc! added to the deeds of my house to avoid just this situation in the future.

Thank you. Yes you're right, I think the others have misunderstood my situation.

So the solution is to add my wife to the deeds and current mortgage on the house?