Another stamp duty scenario for you

karlos_the_jackal

Myself and my partner (not married) both own our own homes. We are planning to buy a new property jointly, move in to it together, sell one home and let the other out.

Will we be liable for the higher-rate SDLT considering that we will own the same number of homes as we started with? (2)

Or maybe because I will be selling I would be entitled to a refund of half the SDLT paid on the new property?

Or perhaps is the only way of avoiding the extra SDLT entirely is to sell both of our properties?

alchemist.1

You will need to sell both of them for it not to apply.

booksurr

it is hardly "another" scenario given there are only 2 possible outcomes in respect of the additional rate SDLT:
a) end with 1, or
b) end with 2 (or more)

the official flowchart sums it up rather concisely
http://forums.moneysavingexpert.com/showpost.php?p=70644284&postcount=10

the guidance then very clearly covers the case of two individuals (eg: an unmarried couple) purchasing jointly whilst retaining one of their previous properties - read para 3.42 on page 13
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509184/GuidanceNote_Final.pdf

HappyMJ

karlos_the_jackal wrote: »

Myself and my partner (not married) both own our own homes. We are planning to buy a new property jointly, move in to it together, sell one home and let the other out.

Will we be liable for the higher-rate SDLT considering that we will own the same number of homes as we started with? (2)

Or maybe because I will be selling I would be entitled to a refund of half the SDLT paid on the new property?

Or perhaps is the only way of avoiding the extra SDLT entirely is to sell both of our properties?

Personally....just personally. You don't live together as yet so what I would do is both of you let your properties out and then rent somewhere for a few years first using the rental income to pay the rent. If after some time living together you then wish to live somewhere long term you could then sell both properties and combine your money and buy somewhere together. Sorry, I've seen so many people buy together on 30 year mortgages yet have never lived together then break up less than a year later forcing a sale and crystallizing large losses. Rent and if you can't live together you can give your tenants notice and move back into your own homes at little cost.

G_M

does your partner know what you do for a job? And is she OK with it.....?

karlos_the_jackal

booksurr wrote: »

the guidance then very clearly covers the case of two individuals (eg: an unmarried couple) purchasing jointly whilst retaining one of their previous properties - read para 3.42 on page 13
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509184/GuidanceNote_Final.pdf

Thanks, I didn't see that document, only the summary guidance on the.gov website. Makes it pretty clear.

karlos_the_jackal

G_M wrote: »

does your partner know what you do for a job? And is she OK with it.....?

A condition of us moving in together is that I give up the marxist terrorism thing, I'm ok with that as it doesn't pay like it used to.