looking to buy - Stamp duty concern

UKSBD

Does your sister live in the home too.


If so, and you are moving out, does it not make more sense to sell her your half?

marksoton

AdrianC wrote: »

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.

Which is clearly the intent here....

pablogp

AdrianC wrote: »

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...

Correct, inherited house is currently my primary residence and the new house will also be. I would not be selling my half share and as you state I believe I would be liable to the extra 3% stamp duty which is fair enough.

If I were to pass on my share of the inherited house to my unborn daughter, from my understanding that would make me exempt from paying the additional 3%. Is that correct?

Bluebirdman_of_Alcathays

pablogp wrote: »

Correct, inherited house is currently my primary residence and the new house will also be. I would not be selling my half share and as you state I believe I would be liable to the extra 3% stamp duty which is fair enough.

If I were to pass on my share of the inherited house to my unborn daughter, from my understanding that would make me exempt from paying the additional 3%. Is that correct?

People under 18 cannot own land or property in the UK. Let alone the unborn!

davidmcn

Bluebirdman_of_Alcathays wrote: »

People under 18 cannot own land or property in the UK.

Actually they can, but the line is drawn somewhere above foetuses...

pablogp

davidmcn wrote: »

Actually they can, but the line is drawn somewhere above foetuses...

she will be born in 7 weeks...will have a read.

thanks all for your help, much appreciated.

bluedrop

OP, sorry to hijack your thread. I read something here I absolutely had no clue about. Can someone confirm if my interpretation is correct?

If I own property1 and then buy property2, I pay 3% extra stamp duty on property2. If I sell property1 in the next 3 yrs, I can reclaim the extra 3% stamp duty paid on property2?

DTDfanBoy

bluedrop wrote: »

OP, sorry to hijack your thread. I read something here I absolutely had no clue about. Can someone confirm if my interpretation is correct?

If I own property1 and then buy property2, I pay 3% extra stamp duty on property2. If I sell property1 in the next 3 yrs, I can reclaim the extra 3% stamp duty paid on property2?

Providing property 1 was previously a main residence your understanding is correct

pablogp

DTDfanBoy wrote: »

Providing property 1 was previously a main residence your understanding is correct

Can you reclaim if you sell property 2 to purchase another property or would you be liable to stamp duty once more?

Brock_and_Roll

pablogp wrote: »

Correct, inherited house is currently my primary residence and the new house will also be. I would not be selling my half share and as you state I believe I would be liable to the extra 3% stamp duty which is fair enough.

If I were to pass on my share of the inherited house to my unborn daughter, from my understanding that would make me exempt from paying the additional 3%. Is that correct?

Good grief!!!!


Is the OP really being serious here?


On the face of it, the situation in which the OP is in is the very type of situation being target by the HMRC with the new rules and of course the civil servants are busy drafting away to prevent obvious methods that might be used to circumvent it.


At the end of the day however the HMRC will attack any artificially constructed "bed & breakfast" deals which they will (quite rightly) regards as tax evasion. If this were not the case, tax would be very easy to avoid indeed!


To be honest, unless the OP is planning on buying a £1m house, the costs of all the legal work and trusts is likely to outweigh any benefit, never mind the risks associated with the HMRC and the risks of a "3rd party" not playing ball.