looking to buy - Stamp duty concern

pablogp

marksoton wrote: »

!!!!!!. Stop trying to have your :bdaycake: and eat it.

And MSE, please can we have a sticky or dedicated thread for all these SDLT questions.....

I'm just trying to make sure what I can and can't do, ensuring I do things legally without having to pay a significant amount of stamp duty. What's wrong with that?

pablogp

Lioness_Twinkletoes wrote: »

Um. If you and your wife are planning on buying a home together how does putting your asset in her name help you evade tax?

ok understood, it's what I thought. thank you.

booksurr

pablogp wrote: »

I thought as much. Thanks for your help. And if I put it in my wife's name?

that would be tax evasion

for goodness sake go and read the guidance instead of wasting time on schemes born from ignorance and lack of personal effort - and you claim to be a teacher!

https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509184/GuidanceNote_Final.pdf

https://www.gov.uk/government/consultations/consultation-on-higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties/higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties

noh

How long ago did you inherit the 50% share of your parents house?

pablogp

booksurr wrote: »

that would be tax evasion

for goodness sake go and read the guidance instead of wasting time on schemes born from ignorance and lack of personal effort - and you claim to be a teacher!

https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509184/GuidanceNote_Final.pdf

https://www.gov.uk/government/consultations/consultation-on-higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties/higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties

where does it say that I'm a teacher? I'm not and even if I was I would be entitled to ask questions.

Some people here are really touchy... Nothing wrong in being diligent.

Yes I have read that, but I want to be extra sure that I'm interpreting it all correctly.

I thought forums were to exchange ideas?

pablogp

noh wrote: »

How long ago did you inherit the 50% share of your parents house?

3 years ago.

AdrianC

So the inherited house is currently your primary residence, and the new house will also be.

Will you be selling your half-share? Either to your sister, or with her half on the open market? If so, you will be able to reclaim the 3% if you sell within three years.

If you aren't, then you are in the very position that this change is intended to penalise...

westernpromise

booksurr wrote: »

that would be tax evasion

Says who?

Tax evasion is usually said to be the illegal non-payment or under-payment of taxes via a false declaration of what's due, or no declaration at all.

Tax avoidance is minimising your tax bill without such deception. An ISAs is a tax avoidance device.

Transferring a property to someone else is clearly an avoidance strategy, as long as the appropriate declarations of CGT and (I would think) SDLT are made and paid.

Marvel1

pablogp wrote: »

Thank you. Yes I do live there which would mean I would not be liable to CGT?

However, at what point would I be able to put my name back on the deeds along with my sisters if I ever wanted to?

At this point it is not your decision to put your name back on the deeds as you gifted the house to your sister, it is hers 100%.

AdrianC

westernpromise wrote: »

Transferring a property to someone else is clearly an avoidance strategy, as long as the appropriate declarations of CGT and (I would think) SDLT are made and paid.

Depending, of course, on whether it's a genuine transfer or just a short-term temporary ruse with the deliberate intent of not paying tax.