Avoiding +3% Stamp Duty

lovinituk

_CC_ wrote: »

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

I know. I was just pointing out that some of the information being offered here is irrelevant, conflicting or wrong in the specific circumstances.

lovinituk

Pixie5740 wrote: »

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

The way I had understood it all up until this thread started, agrees with your view (of course, I am hoping our version is the right one!).

However there are posters here who are normally on the ball saying the opposite.

Pixie5740

I think the issue that the OP is facing is that the partner doesn't own a BTL property but a residential property so the new property would be like a second home but like I said, I wouldn't give good odds on me being right.

Berger_3

I think I'm in the same boat as the 2nd poster.


Currently living in my flat with my wife, she isn't named on mortgage etc.


She owns BTL with her mum, this is being sold but not yet.


My place is being sold and we are hoping to buy a new home before 31st March.


If this doesn't happen we will either have to wait until hers sells too, to avoid the tax -


OR as her main residence is my property (legitimately, she has lived there for three years) she will just be swapping her main residence, so this could make her exempt..


BUT she will go from owning one property to two - which could also mean she is not exempt?


Confusing.

booksurr

Pixie5740 wrote: »

I think married couples can only have one main residence.

relates to CGT not SDLT

lovinituk

booksurr wrote: »

relates to CGT not SDLT

So our house is not my wifes main residence for the purposes of SDLT?!

booksurr

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?

OK I did misread that, you are liable for the +3% because your wife is going from 1 to 2 and is not replacing her main home given she has no claim to ownership of that as it is the one being sold

marksoton

lovinituk wrote: »

So our house is not my wifes main residence for the purposes of SDLT?!

Personally i don't see how it could be when she's not named on the deeds/mortgage but is on another property.

TBH until all these plans are finalised who knows?

Look at the U turn they did on pensions only the other day...

davidmcn

booksurr wrote: »

OK I did misread that, you are liable for the +3% because your wife is going from 1 to 2 and is not replacing her main home given she has no claim to ownership of that as it is the one being sold

I second this.

Pixie5740

I bow to booksurr's greater tax knowledge. It does seem bonkers that there is a difference in what qualifies as a married person's PPR for SDLT and CGT but I am not shocked if that is the case.