Buy property jointly stamp duty question

Brightonsbest_2

Hiya

Thinking about buying another property.


Question, do we have to pay the extra 3% stamp duty on the half share or full price? I feel its the half share but nothing on the net clarifies this.

thanks

teddysmum

Stamp duty is due on the whole, as has been mentioned on here, when one person who already owned, wanted to keep that house and buy another with a partner who is a first time buyer.


Also, I believe that all purchasers would need to be on the mortgage, as there would be difficulties for the mortgage provider, should your son fail to meet payments and they need to repossess.

Brightonsbest_2

Thanks

Just for clarification

Not buying with my other half but our son who has no properties at the moment.

teddysmum

Brightonsbest wrote: »

Thanks

Just for clarification






Not buying with my other half but our son who has no properties at the moment.

Your wife is not relevant , but you already have multiple properties.

Brightonsbest_2

Anyone can confirm the answer please?

I

tom9980

Brightonsbest wrote: »

Anyone can confirm the answer please?

I see no reason to pay the extra 3% on the whole of the 400k as our son will own half and he is a first time buyer, so i should pay on 200K, is this correct?

It is due on the whole 400k so you are not correct. There is no legal way around this.

Lloyd90

Brightonsbest wrote: »

Anyone can confirm the answer please?

I see no reason to pay the extra 3% on the whole of the 400k as our son will own half and he is a first time buyer, so i should pay on 200K, is this correct?

Sorry but Teddysmum has kindly answered your question twice already.

You have to pay the extra 3% on the full purchase price. That's just the way it is now.

You also have to pay tax on the income now not the profit. Might want to consider buying through a company not as individuals.

Brightonsbest_2

Thank you all.

davidmcn

Brightonsbest wrote: »

I see no reason to pay the extra 3% on the whole of the 400k

The reason is that that's what the rules say. Whether you agree with them or understand them is neither here nor there.

dimbo61

well stamp duty would be £10,000 if you were a First time buyer but it will cost £22,000 as you already own a property or TWO.
This must be a windup if you are already a Landlord

Pixie5740

If only HMRC had produced some kind of guidance note....

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/570876/SDLT_Higher_rates_for_additional_properties.pdf