STAMP DUTY (my partner is a first time buyer but am not)

Zacser321

Hello Guys, I would greatly appreciate your feedback on this to clarify my understanding.

Situation: My GF is a first time buyer but i personally i am not. We looking at buying a family home jointly. Is my understanding correct that i personally will incur the 3% extra stamp but she wont on her half?

How exactly is this calculated please i.e. take for example the house is £400k?
Can one dictate what % each owns or do they take it to be 50/50 in calculating stamp?

I would be so grateful for any feedback on this pls.

Bluebirdman_of_Alcathays

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

Section 8, Q20. Additional sdlt due on ALL of the purchase price

Cakeguts

As I understand this you only have to pay 3% extra stamp duty if you are buying a house whilst still owning another one. You don't have to pay it if you don't own any other property at the point when you buy the home with your GF. The 3% extra stamp duty is for people buying second homes so that they end up continuing to own at least 2. It isn't aimed at people who are buying a home and don't own another one. So the 1st time buyer bit is nothing to do with whether you own 2 houses.

I don't think the 50/50 split is taken into account. I think it applies to the whole purchase price if one of the buyers is going to own this house and at least one other.

booksurr

if after buying the "family" home you own 2 properties then yes SDLT will be payable at the higher rate on the WHOLE of the value, not 50%

if you won't own 2 (or more) properties then the higher rate is not applicable

please clarify your position to get the correct answer

alchemist.1

The additional Stamp Duty is nothing to do with being a first time buyer or not.

Zacser321

Thanks for you input Guys.

To clarify, yes after the purchase, i personally will still own both property (First one fully in my name and the second jointly).

Guess my question was whether there are any benefits to reduce the higher stamp duty when buying jointly with a first time buyer?
Based on the responses,there isnt and in a sense its not fair on my GF who is a first time buyer?

cashbackproblems

Zacser321 wrote: »

Thanks for you input Guys.

To clarify, yes after the purchase, i personally will still own both property (First one fully in my name and the second jointly).

Guess my question was whether there are any benefits to reduce the higher stamp duty when buying jointly with a first time buyer?
Based on the responses,there isnt and in a sense its not fair on my GF who is a first time buyer?

No there isn't any way to reduce it you still pay the extra 3% unless you sell your other properties within 18 months. Or if the new property is solely in your gf's name, but this maybe not practical. Its not fair on your gf because of your situation not anyone else's doing!

Bluebirdman_of_Alcathays

The easiest way is to avoid it is to sell your other property. Not the answer you want, but that is exactly what this new tax is trying to achieve - release housing stock away from LLs to FTBs.

Zacser321

I appreciate that aim of the new rules Bluebird.

"Cashbackproblems" - Yes, its not feasible for my gf to fully secure the mortgage on her own am afraid.

davidmcn

Zacser321 wrote: »

in a sense its not fair on my GF who is a first time buyer?

But they presumably didn't want to allow an obvious avoidance method (e.g. just add somebody else to your title in order to half the SDLT surcharge).

Zacser321

Thats fair David. Just wanted to clarify my understanding.