Help with Stamp Duty

luvin_the_money

Hello Money Saving Forum users.

I am after some advice on Stamp duty and my situation.

Property A ...bought 50% shared ownership 12/2007 which I lived in for a while. (stamp duty deferred)

Property B.... Bought a house for me and the Mrs 09/2013 (Mrs also owns 2 other BTL's)

Property A is now empty and run down so I am planning on buying the other half at market value (cash) and leaving my existing mortgage running on it. What stamp duty would I pay if the full market value is £100K. Do I pay the 3% as it is a second home?

Is there a way of not paying the 3% stamp duty?

lewishardwick

You'd pay 3% SDLT.

No way around it.

luvin_the_money

lewishardwick wrote: »

You'd pay 3% SDLT.

No way around it.

I like the bluntness of your reply... Thank you.

would the reasoning behind it be that stamp duty is payable once I own an 80% share and at this point it is assessed on my other home ownership status?

booksurr

luvin_the_money wrote: »

would the reasoning behind it be that stamp duty is payable once I own an 80% share and at this point it is assessed on my other home ownership status?

in a word: Yes
plus the rule that as a "unit" (ie married couple) you in fact are deemed to currently own 4 not 2 properties in total

luvin_the_money

booksurr wrote: »

in a word: Yes
plus the rule that as a "unit" (ie married couple) you in fact are deemed to currently own 4 not 2 properties in total

We are not married.... Yet... but will be before completion (6th August). What if we "Separated" or since I bought property A first could this be classed as my Main home?

I get the feeling I will just have to pay it....

Bluebirdman_of_Alcathays

luvin_the_money wrote: »

We are not married.... Yet... but will be before completion (6th August). What if we "Separated" or since I bought property A first could this be classed as my Main home?

I get the feeling I will just have to pay it....

Nobody from HMRC will believe you will have separated less than 1 month after marriage.


Your main home is a statement of fact, not interpretation - you can only classify it as your main home if it actually is.


You will have to pay.

Hoploz

Shame that stamp duty was deferred in the first place

booksurr

luvin_the_money wrote: »

We are not married

:idea: then please don't refer to "Mrs" when asking about tax as it is based on legalities not political correctness (or what has not yet happened), stick to the current situation so you do not get misleading answers given in good faith

luvin_the_money wrote: »

What if we "Separated" or since I bought property A first could this be classed as my Main home?

I get the feeling I will just have to pay it...I get the feeling I will just have to pay it....

rather than shoot down your what if questions one by one as you try to wriggle, either read the guide so you can shoot yourself, or just accept that you will have to pay

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

luvin_the_money

Bluebirdman_of_Alcathays wrote: »

Nobody from HMRC will believe you will have separated less than 1 month after marriage.


Your main home is a statement of fact, not interpretation - you can only classify it as your main home if it actually is.


You will have to pay.

Over the next 12 months I will be living at property A for 7 months. So by "Statement of Fact" as I will be living in property A more than property B it is my main home?

I will not lie by saying we are separated I was just interested.

luvin_the_money

Hoploz wrote: »

Shame that stamp duty was deferred in the first place

Yes.... I was 22 and did not want to pay extra... if only I would have known then what I know now.

Never mind its only money.