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SDLT Query - marriage and 'second property'?
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StrongWork
Posts: 552 Forumite
Hi all,
A bit of advice please re SDLT (which seems to be legalised robbery anyway...) because it will make quite a notable difference to things.
My wife owns a flat in London. She owned it before we were married. She pays the mortgage and all the bills. Her name is on the deeds. I have nothing to do with it.
I am looking to buy a house in Essex. This will be entirely funded by me, mortgage paid by me and it will only be my name on the deeds.
It is planned that we will live together in the new house so this will replace the flat as her 'main residence'. I already rent in Essex.
Where do I stand from an SDLT point of view given the above situation?
The London flat is nothing to do with me, however as we are married does this count for me as a 'second property' and as such make me eligible for the higher charge (an additional 16k or so!!).
Would appreciate your opinions guys, TIA. :beer:
A bit of advice please re SDLT (which seems to be legalised robbery anyway...) because it will make quite a notable difference to things.
My wife owns a flat in London. She owned it before we were married. She pays the mortgage and all the bills. Her name is on the deeds. I have nothing to do with it.
I am looking to buy a house in Essex. This will be entirely funded by me, mortgage paid by me and it will only be my name on the deeds.
It is planned that we will live together in the new house so this will replace the flat as her 'main residence'. I already rent in Essex.
Where do I stand from an SDLT point of view given the above situation?
The London flat is nothing to do with me, however as we are married does this count for me as a 'second property' and as such make me eligible for the higher charge (an additional 16k or so!!).
Would appreciate your opinions guys, TIA. :beer:
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Comments
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Yes, second property, additional SDLT payable. My understanding is that couples (I'm not sure exactly how couples is defined but married is definitely included) are treated as a single entity for this purpose.0
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You are exactly the type of people this tax is designed to catch. You can sell the London flat now, and avoid the extra tax entirely. Or sell it within 3 years and have the extra tax refunded.0
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Yep, the answer to 99% of second house SDLT questions here is "yes it is due".
She isn't replacing her main residence in the eyes of the law, because she is buying a second property. If she was selling it that would be different, but here you've got a married couple starting with one property and ending up with two.
If she sells the flat within 3 years you can reclaim the SDLT.0 -
A quick search will reveal that this question, with almost identical circumstances is asked and answered almost daily on here.
Married couples are treated as a single entity and therefore the SDLT is payable.0 -
Thanks for the info, bad news then. :mad:
Given the deed situation (London hers, Essex mine) and the fact the new property will be entirely paid for by myself, I assume this makes no difference?
*clutches at straws*
PS It seems marriage (so far) is an expensive mistake.
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Not even a flimsy blade of grass let alone a straw.
It's due, OK ? Accept it.0
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