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second home or not?

sallykins
sallykins Posts: 8 Forumite
in House buying, renting & selling
Am a joint owner of a property which will be going on the market soon.
Neither of us live in it. I live abroad and the other owner has own house in uk.
Its currently occupied by elderly relative.
We are about to buy said elderly relative a different house in another county with cash funds.
Q - will 'second home tax' apply to one or both of us on new property? Bearing in mind my part will only be second home until original house sells.

Comments

  • booksurr
    booksurr Posts: 3,700 Forumite
    edited 8 September 2016 at 9:09PM
    I assume you mean higher rate Stamp Duty Land Tax (SDLT)

    the answer is YES
    neither of you live in the property so it is not the replacement of your main home.

    It is really very simple to follow the flowchart

    http://forums.moneysavingexpert.com/showpost.php?p=71214967&postcount=4
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    Yes. The only relief is when replacing your main home, in this case none of the properties involved fall into that category. You may be able to get round it by selling the property that you part own first. The other owner will be clobbered anyway as they will own either 2 or 3 properties.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    agrinnall wrote: »
    You may be able to get round it by selling the property that you part own first. The other owner will be clobbered anyway as they will own either 2 or 3 properties.

    Only way to avoid it would be for both joint owners to sell all their other properties, surely?
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    davidmcn wrote: »
    Only way to avoid it would be for both joint owners to sell all their other properties, surely?

    It depends, we don't know the relationship between the two owners because the OP hasn't told us, so we don't know whether the property owned by the other person has any bearing on the OP's liability. Which is why I used the word "may".
This discussion has been closed.
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