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New Stamp Duty 1st April 2016 Rules

pbad2k
pbad2k Posts: 1 Newbie
in House buying, renting & selling
I need some advice about the new stamp duty tax rules and I'm hoping someone on this forum can answer this.


I helped my sister to get a mortgage so that my sister and her husband could buy a house. The house was purchased about 1-2 years ago. I don't pay anything towards their mortgage and I don't live in their house.


I am in the process of buying a house, would I have to pay the extra stamp duty that came into force on 1st April 2016?

Comments

  • tom9980
    tom9980 Posts: 1,990 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've helped Parliament
    If you are on the deeds and mortgage then yes

    SDLT-diagram.jpg
    When using the housing forum please use the sticky threads for valuable information.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    pbad2k wrote: »
    I don't pay anything towards their mortgage and I don't live in their house.


    Suggest to your sister that she remortgages the property into their names.
  • kinger101
    kinger101 Posts: 6,573 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 22 April 2016 at 6:21PM
    What do you mean by helped them with the mortgage? Who is named on the deeds? Who is named on the mortgage?

    It can be very bad tax planning to buy a property on behalf of someone else. If you are the beneficial owner of your sister's property, then on transfer to her, you may pay CGT (as it's not your main residence) and she may incur SDLT.

    I'd suggest you speak to an accountant or chartered tax advisor before you do anything else.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
This discussion has been closed.
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