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New Stamp duty / Second home???
smollions
Posts: 12 Forumite
Hello,
I've been scratching my head at this for a while now but me and my wife are looking to buy our first home together. We are currently renting right now. The problem is, about 10 years ago, my parents bought a flat and put half of the deed under my name and the other half under my brothers name and they rented out the place. I've never lived in it and it's always been rented, I also don't received any of the income from the flat. Would I still incur the new additional % second home stamp duty hell trap if I buy a house with my wife? It just seems a bit unfair for us to pay the huge stamp duty as this will be our only real home we will reside in.
Many thanks,
Oliver
I've been scratching my head at this for a while now but me and my wife are looking to buy our first home together. We are currently renting right now. The problem is, about 10 years ago, my parents bought a flat and put half of the deed under my name and the other half under my brothers name and they rented out the place. I've never lived in it and it's always been rented, I also don't received any of the income from the flat. Would I still incur the new additional % second home stamp duty hell trap if I buy a house with my wife? It just seems a bit unfair for us to pay the huge stamp duty as this will be our only real home we will reside in.
Many thanks,
Oliver
0
Comments
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Yes - you currently own one property, and will soon own two. If you dispose of the share in the other property within 36 months you can reclaim the additional SDLT.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509184/GuidanceNote_Final.pdf0 -
The problem is, about 10 years ago, my parents bought a flat and put half of the deed under my name and the other half under my brothers name and they rented out the place.
I've never lived in it and it's always been rented, I also don't received any of the income from the flat.
You and your brother are landlords and have all the legal responsibilities of LLs. Are you complying with them?
Does the HMRC know that you own a property which is rented out? You and your brother should be declaring the rental income. It doesn't matter that your parents are running some kind of fiddle on the ownership of the flat - you are the owners and the owners receive the rent and are liable for tax.0 -
Do you know if changing my name on the flat deed back to my parents would get us out of the additional stamp duty?
I believe my parents sort out the income tax from that but I'll double check with them!0 -
Thanks for answering. I sure hope she doesn't! haha0
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