Avoiding +3% Stamp Duty

lovinituk

Official guidance now released (thanks booksurr for link) - https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/508272/GuidanceNote_Final.pdf

I *think* it classes my wifes main residence as our house even though she is not on the deeds therefore we would not be liable to the higher rates.

In our case, Condition D is not met...

Individuals – purchase of a single dwelling – Condition D
3.16 Condition D is that the purchased dwelling is not a replacement of the purchaser’s only or main residence

3.29 Various interests not owned by an individual are treated as being owned by them, similarly, if those interests are disposed of, the individual will be treated as having disposed of them for the purposes of determining if a purchase is a replacement of a main residence, see below under the section on interests treated as being owned by an individual.

Individuals – What is a main residence?
3.30 The rules require the dwelling disposed of to be the purchaser’s only or main residence at some time during the period of three years before the purchase.

Have I missed anything that might say otherwise?

smc101

Hi, appreciate some advice from you wise people

I am buying a property with my fiance to be considered our main residence. She recently sold her house (which was let out). I have another property which is let. We both live with our parents therefore have no "main residence" to sell. Where does this leave us regarding the new surcharge?

lovinituk

smc101 wrote: »

Hi, appreciate some advice from you wise people

I am buying a property with my fiance to be considered our main residence. She recently sold her house (which was let out). I have another property which is let. We both live with our parents therefore have no "main residence" to sell. Where does this leave us regarding the new surcharge?

My best guess is that you will have to pay the extra 3% because your fianc!e will be going from having one property to having 2.

I would have thought that the only way to avoid it would to be for you to purchase the new house in your name only. You may not have to pay the additional stamp duty because you are not yet married.

This is my opinion only based on my understanding of the new rules. Seek professional advice to be sure.

[Deleted User]

smc101 wrote: »

Hi, appreciate some advice from you wise people

I am buying a property with my fiance to be considered our main residence. She recently sold her house (which was let out). I have another property which is let. We both live with our parents therefore have no "main residence" to sell. Where does this leave us regarding the new surcharge?

Its doesn't matter if the house you currently own is not your main residence, you will still have to pay the extra stamp duty if you buy another house unless it is in your fianc!e's name only.

Like it or not the new rules are there to discourage people from owning more than one house, to free up property for those who want to buy and actually live in their house.

smc101

Deleted_User wrote: »

Its doesn't matter if the house you currently own is not your main residence, you will still have to pay the extra stamp duty if you buy another house unless it is in your fianc!e's name only.

Like it or not the new rules are there to discourage people from owning more than one house, to free up property for those who want to buy and actually live in their house.

Initially I had resigned myself to having to pay the extra - I don't think putting the new house in my fiance's name is viable as it is a joint mortgage. The reason I am querying is due to some of the wording on the govt's website

Where a purchaser (or, in the case of joint purchasers, all purchasers) own one property at the end of the day of a transaction they will not pay the higher rates. Purchasers will only need to determine whether they have replaced a main residence if they own two or more properties at the end of the day of the transaction.

In that situation, a purchaser will pay the higher rates of SDLT if they are not replacing their main residence. If they are replacing their main residence, they will not pay the higher rates.

Just wondering how the govt would define my current main residence as it isn't my let flat, but as I don't own my parent's house, I can't sell it

brit1234

If you have a let flat and don't have your own place to live in then when you buy that property to live in you will have to pay an extra 3% as you already own a property.

smc101

brit1234 wrote: »

If you have a let flat and don't have your own place to live in then when you buy that property to live in you will have to pay an extra 3% as you already own a property.

Thank you - I thought this was the case, but wanted to seek advice - much appreciated.

Lukeedwards88

My girlfriend is about to go on a private mortgage through a solicitor with the owner of a property (£55,000). She will own 50/50 with her sister. The property will be let out.

How will it affect her, if her share was bought out in terms if CGT

Also, how would it affect us in terms of stamp duty when buying our first home?