stamp duty on a 1st home

searchlight123

i'm getting very confused and receiving conflicting answers to this scenario:

my partner who lives with me (and has done for 15 years), doesn't own any of my house or any other property.
she is buying a property (without a mortgage) that should be obtainable at £125,000 and has an existing tenant in it that will continue to live there, so the property will be let out.

my question is, will she be liable to pay stamp duty if she secures the property at £125,000 and what stamp duty rate would she have to pay if the property was secured for say £135,000?

many thanks.

MrJB

SDLT rules changed last year. 125k no SDLT due. Thereafter SDLT payable at a rate of 2% on anything over £125,000 (up to the other thresholds). Thus 2% of £10,000 at £135,000 is £200. There's a Gov SDLT calculator available here...

Assuming she owns no other property and it will be purchased in her sole name.

https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

searchlight123

MrJB wrote: »

SDLT rules changed last year. 125k no SDLT due. Thereafter SDLT payable at a rate of 2% on anything over £125,000 (up to the other thresholds). Thus 2% of £10,000 at £135,000 is £200. There's a Gov SDLT calculator available here...

Assuming she owns no other property and it will be purchased in her sole name.

https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

thanks for reply. thats how i understood, but then i was told (not by an expert i presume) that as its being bought to let out it would attract stamp duty and if it was say £135,000 it would be 2% of £135,000 ie £2,700.

and yes, the property will be solely in her name.

Bluebirdman_of_Alcathays

tonygold wrote: »

thanks for reply. thats how i understood, but then i was told (not by an expert i presume) that as its being bought to let out it would attract stamp duty and if it was say £135,000 it would be 2% of £135,000 ie £2,700.

and yes, the property will be solely in her name.

What she wants to do with it is irrelevant - the additional rate of stamp duty is based on number of houses owned, it has nothing to do with BTL.

searchlight123

In fact this is even more confusing as i used a calculator on the Which? web site that suggests a stamp duty liability of £3,750 on a purchase price of £125,000 and the wording is as follows:

Buy-to-let stamp duty calculator
Enter the price of a buy-to-let property or second home to find out how much stamp duty you'll have to pay on it.

Property price (£):
125000

Calculate
Stamp duty payable on this property is £3,750.00

the intersting wording is the 'buy to let property OR second home'

this will be a buy to let property but NOT a second home????

davidmcn

tonygold wrote: »

this will be a buy to let property but NOT a second home????

Ignore it, they're just presuming that anyone with a BTL property is also an owner-occupier.

booksurr

tonygold wrote: »

In fact this is even more confusing as i used a calculator on the Which? web site that suggests a stamp duty liability of £3,750 on a purchase price of £125,000 and the wording is as follows:

Buy-to-let stamp duty calculator
Enter the price of a buy-to-let property or second home to find out how much stamp duty you'll have to pay on it.

Property price (£):
125000

Calculate
Stamp duty payable on this property is £3,750.00

the intersting wording is the 'buy to let property OR second home'

this will be a buy to let property but NOT a second home????

as you have been told above, the higher rate of SDLT , ie the fact that tax is payable on everything as there is no 125k nil rate band, applies to the purchase of a SUBSEQUENT PROPERTY and is therefore based on the fact that the purchaser already owns a FIRST property. Where there is only ONE property owned then you get the 125k nil rate band.

she doesn't own more than one property, she will only own one property. You are therefore using the wrong calculator because you don't understand the above condition

searchlight123

thats good news. many thanks.
i still think its confusingly worded though because as in my partner's circumstances you could read the rules either way.

kinger101

Are you married or in a civil partnership?

AnotherJoe

tonygold wrote: »

In fact this is even more confusing as i used a calculator on the Which? web site that suggests a stamp duty liability of £3,750 on a purchase price of £125,000 and the wording is as follows:

Buy-to-let stamp duty calculator
Enter the price of a buy-to-let property or second home to find out how much stamp duty you'll have to pay on it.

Property price (£):
125000

Calculate
Stamp duty payable on this property is £3,750.00

the interesting wording is the 'buy to let property OR second home'

this will be a buy to let property but NOT a second home????

That's very sloppy of Which. Maybe their social media people will pick this thread up and fix their incorrect and misleading text? It needs more explanation especially since its not about whether its a BTL or not.

EDIT( as per post above this, most here have assumed partner means "not married" but if you two are married / in civil partnership then she will pay have to pay it.)

searchlight123

kinger101 wrote: »

Are you married or in a civil partnership?

Not married but have lived together full time for 15 years in my house registered solely to me.