First Time Buyer Definition Peculiar Question

strokebow1

Hello there,

I recently filled out the HMRC first time buyer declaration as part of the ISA scheme. However, upon subsequent careful consideration I must ask, what does this mean?
I am resident in the United Kingdom for tax purposes or, if not so resident, either perform duties which, by virtue of section 28 of the Income Tax (Earnings and Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the United Kingdom, or I am married to, or in a civil partnership with, a person who performs such duties.

Not sure why they cant just write this in simpleton form but that for another day.

Specifically, this is what I am worried about.

I do not own and have never owned a property anywhere in the world. I dont have a mortgage, my name is not on any deeds etc.
However, I am married. My wife owns a property solely in her own name.

Therefore not knowing what the above underlined means, I just want peace of mind to know that all is above board. I presume so but nothing like a second, third and fourth opinion!

Cheers

davidmcn

The bit you've underlined is just to do with your residency for tax purposes - nothing to do with whether or not you are a first time buyer.

pinkteapot

With regard to the underlined bit you don't need to worry. You are resident in the UK for tax, I assume. If so, everything after "or" (word 11) doesn't matter. The rest of it only applies if you're NOT a UK resident for tax purposes.

Have you bought or are you buying the property solely in your name? Mortgage and deeds are both in your name only? If your wife will be named then I'm not sure it'd be a first time buyer purchase, as BOTH parties need to be first time buyers (I believe?). People with more knowledge on this will be along soon.

strokebow1

Thanks, that sounds good! :-)

Cakeguts

I believe you are still going to have to pay the extra 3% stamp duty though.

G_M

As a married couple you are considered to be a single unit for the purposes of the FTB ISA scheme.

So no - you do not qualify.

The clause you have quoted is not relevant to this.

However the next clause says:

I do not own, and never have owned any interest in land,.....

You have an interest in the land owned by your spouse.

scottishblondie

G_M wrote: »

As a married couple you are considered to be a single unit for the purposes of the FTB ISA scheme.

So no - you do not qualify.
.

I believe eligibility for the HTB ISA is on an individual basis, so if one half of the couple is a FTB they can open a HTB ISA in their name and claim the bonus, though their property-owning spouse obviously cannot.

However they are treated as a single unit for stamp duty, and so will be liable for the extra 3%.

Edit: It's number 4 on the "need to know" list

G_M

scottishblondie wrote: »

I believe eligibility for the HTB ISA is on an individual basis, so if one half of the couple is a FTB they can open a HTB ISA in their name and claim the bonus, though their property-owning spouse obviously cannot.

However they are treated as a single unit for stamp duty, and so will be liable for the extra 3%.

Edit: It's number 4 on the "need to know" list

Hmmm. Interesting. You (or rather Martin) may be right, bu I'd be more convinced if I saw this on an official (ie government/HMRC) website.

The Treasury Document wording is as I quoted above and specifically mentions 'owned an interest in land'.........

However I'm happy to be corrected!