Second Home and Stamp Duty

gazgits

Hi
I have just read the disturbing news about 3% stamp duty on a second property. I am currently in the position of buying a flat for myself and my new partner and was wondering if this counts as a second property as i still own the house that my ex-wife and children live in. I agreed they could stay there until my youngest finishes school. I no longer live there myself and when i visit the children stay at friends.

Does anyone know if the flat will count as a second property an therefore i have to pay stamp duty?

Or because it will be my main residence then I will be ok and not have to pay the 3%.

Thanks in advance

SmlSave

Yes, from everything I've seen you will have to pay the higher tax.

gazgits

So even though i don't live there or rent it out i still have to pay a massive tax bill. I wonder if this happens to all divorced couples.
This is what i get for trying to look after my children rather than demanding the house be sold after we separated.

Bluebirdman_of_Alcathays

It has nothing to do with the issues you've mentioned, it's a penalty for those that own more than 1 home.

Baxter100

Tough situation, but yes unfortunately you'll have to pay the extra stamp duty as it sounds.

What's happening to the flat you already own when your kids finish school?

Dan-Dan

Perhaps there will be exceptions to the new law in the budget

Baxter100

No doubt there will be the odd exception, but the more loopholes you create the more useless the tax becomes.

gazgits

Baxter100 wrote: »

Tough situation, but yes unfortunately you'll have to pay the extra stamp duty as it sounds.

What's happening to the flat you already own when your kids finish school?

We will be selling the house. From what i have read i believe i can claim back the tax if i sell the house within 18 months.

My other option is hopefully to put the new flat in my partners name.

[Deleted User]

Only if she can afford to pay the mortgage on her own.

I assume the arrangement with the house from your previous relationship was done as part of the disposal of assets in a divorce? If not, you can change the situation but you are correct, this will affect your children. Of course, at the time no one knew that present SDT changes would occur.

AdrianC

Dan-Dan wrote: »

Perhaps there will be exceptions to the new law in the budget

That's fairly unlikely, since it was only announced in the Chancellor's Autumn statement, back at the end of November, and hasn't even gone live yet.

http://www.bbc.co.uk/news/business-34922738

kinger101

AdrianC wrote: »

That's fairly unlikely, since it was only announced in the Chancellor's Autumn statement, back at the end of November, and hasn't even gone live yet.

http://www.bbc.co.uk/news/business-34922738

But the whole purpose of the recent consultation was to decide on the exact rules which will be announced in the budget. The 18 month rule should apply in this case though, but I'm not sure if there will be any other amendments to reflect separations. It's not uncommon for the ownership to be retained by both parents where children are involved.