Avoiding +3% Stamp Duty

marksoton

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?

Your wife currently owns 1 property (her flat)

When you and her purchase your new house she will own 2 properties (her flat and the place you both will live)

Therefore the extra 3% SDLT will be payable on your new home (as the legislation has been currently presented)

I can't see any conflicting opinions on here!

lovinituk

marksoton wrote: »

I can't see any conflicting opinions on here!

According to Pixie5740, my wifes main residence is our main home, even though she is not on the deeds. When replacing your main residence, you are exempt from the extra 3% according to everything I have read and agreed by some posters here.

So according to Pixie5740 and others my wife does not have to pay the 3% but according to you and some others, my wife does have to pay.

You can see my confusion!

lovinituk

From here - http://www.zoopla.co.uk/discover/buying/q-a-new-3-stamp-duty-surcharges/#sAjSLCsXJKvJA6QD.97

"Q. What if the home I am buying is my main residence?

If the home you are buying directly replaces your main residence, you will not be liable for the 3% surcharge, even if you own an additional home/s. This example is straight from the Government's consultation document:

"A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply."

But, the Treasury says that, moving out of rented accommodation does NOT constitute a main residence. Your last residence will need to be disposed of (ie, sold) to escape the surcharge."

So is our main home, the one we would be replacing, my wifes main residence? If it is, as alluded to by several on here, then we won't have to pay the additional 3% according to the above?!

lovinituk

Bluebirdman_of_Alcathays wrote: »

Your residence is where you live - it has nothing to do with deeds. People who rent have a residence!

lovinituk wrote: »

But, the Treasury says that, moving out of rented accommodation does NOT constitute a main residence. Your last residence will need to be disposed of (ie, sold) to escape the surcharge.

For the purposes of the new stamp duty, it appears the Treasury doesn't agree with you!

Pixie5740

From www.gov.uk



In the OP's case it is possible for them to have separate PPR as they are not married. The same with scottishblondie because she was engaged to her partner, not married.

lovinituk

Pixie5740 wrote: »

In the OP's case it is possible for them to have separate PPR as they are not married. The same with scottishblondie because she was engaged to her partner, not married.

So marriage DOES come in to it? Others seem to think not...?

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.

So in your opinion you think we would be exempt because we are married and can class the house as my wifes main residence even though she is not on the deeds? marksoton seems to think the opposite because she would be going from 1 property to 2.

@marksoton - surely you can see the conflicting opinions now?!

_CC_

marksoton wrote: »

Your wife currently owns 1 property (her flat)

When you and her purchase your new house she will own 2 properties (her flat and the place you both will live)

Therefore the extra 3% SDLT will be payable on your new home (as the legislation has been currently presented)

I can't see any conflicting opinions on here!

It depends on what is classed as the persons main residence. Also, married couples are classed as "one unit" (one main residence between them).

_CC_

Ah, too late!

Pixie5740

I wouldn't put money on me being right. booksurr is the tax expert round these parts.

_CC_

lovinituk wrote: »

For the purposes of the new stamp duty, it appears the Treasury doesn't agree with you!

TBF, without that it would leave a gaping hole in their plans...

Let out current house > move into rental accommodation for a short period > purchase new main residence