Second home stamp duty (Scotland)

Jahaangle

My partner and I are saving to buy our first home, house prices are approx £150-180k in our area. I have a joint mortgage with my mother that I took out over 10 years ago to help provide security for her and my autistic brother, the plan being the house would pass to him so he would have somewhere to live. I will never profit from the home barring the unforeseen.

Unfortunately we've been caught up in the changes to Stamp duty as I'm technically buying my second home leaving my partner and I effectively priced out of the market for the mid to long term. Instead of paying £700 we're facing over £6k.

I'm unable to complete a transfer of equity as there's a secured loan on my mum's house taken out when we bought it and as she's on ESA it's unlikely she'd be allowed to take on the mortgage herself anyway.

I'd love to hear from anyone in a similar situation who could advise of any options we might have?

Thanks

Jahaangle

Can anyone offer any advice?

googler

Lobby the Government to modify their stance?

Pixie5740

SDLT was abolished in Scotland 1st April 2015 and replaced with LLBT. As of 1st April 2016 a higher rate of LLBT was introduced for second homes and BTL.

No good deed goes unpunished and whatever reason for buying a property with your mum this next purchase will be a second home and incur the additional LLBT. I haven't found anything which would indicate an exception being made for people in your situation.

System

is it not only for a true second home that it's applicable?
I thought if you are buying/selling your primary residence then the higher rate doesn't hit you.
best ask an accountant/solicitor on the ins and outs!

theartfullodger

You presumably have read through all the information from this & other sources??
https://www.revenue.scot/land-buildings-transaction-tax/guidance

marksoton

the_r_sole wrote: »

is it not only for a true second home that it's applicable?
I thought if you are buying/selling your primary residence then the higher rate doesn't hit you.
best ask an accountant/solicitor on the ins and outs!

But a "true second home" gets defined how?

From the OP's posts it would indicate it's not their main residence, and more to the point they're not selling the other property.

Bluebirdman_of_Alcathays

the_r_sole wrote: »

is it not only for a true second home that it's applicable?
I thought if you are buying/selling your primary residence then the higher rate doesn't hit you.
best ask an accountant/solicitor on the ins and outs!

No. If you are replacing your primary residence, then you are exempt.

davidmcn

Bluebirdman_of_Alcathays wrote: »

No. If you are replacing your primary residence, then you are exempt.

Or to be exact you have the right to reclaim the additional tax paid after you complete the sale of your original primary residence within 18 months.

Donnaw

I am in a similar position Jahaangle. We have two properties which are rented out. We ourselves have been renting a property for nearly 3 years. Now we are buying a home which I thought was classed as our main residence because in theory we have no property as they are both occupied. We live in Scotland and now instead of stamp duty being £1900 we have just been told at the last minute that it's going to be £8700. Our solicitor never mentioned this before. I don't know what to do 🙁🙁🙁

dimbo61

Simple really sell both your rental properties within 18 months and claim back the extra stamp duty.