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Stamp duty on second home
X4cs
Posts: 8 Forumite
Can anyone help with this one?
A parent and I are looking to buy a house for the parent to live in where we're both making a financial contribution to purchase it. The house will be going in my name and I was wondering if anyone could tell me whether i'd be subject to paying second home stamp duty with me already having a home.
Our circumstances are:
Parent: single, mortgage free home to sell with monies from that sale going towards aforementioned house.
Me: Married, living with Wife in a house with a mortgage where i'll contributing funds for aforementioned house purchase via either a loan or mortgage.
Would the new house be classed as a second home for me? and would I be subject to paying stamp duty on the entire purchase price as a result, even though it will be a family members permanent residence?
Thanks in advance.
A parent and I are looking to buy a house for the parent to live in where we're both making a financial contribution to purchase it. The house will be going in my name and I was wondering if anyone could tell me whether i'd be subject to paying second home stamp duty with me already having a home.
Our circumstances are:
Parent: single, mortgage free home to sell with monies from that sale going towards aforementioned house.
Me: Married, living with Wife in a house with a mortgage where i'll contributing funds for aforementioned house purchase via either a loan or mortgage.
Would the new house be classed as a second home for me? and would I be subject to paying stamp duty on the entire purchase price as a result, even though it will be a family members permanent residence?
Thanks in advance.
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Comments
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Yes.
It's really not that complicated a situation. You have a house. You're buying another one.
What reason is it going in your name (only?) when your parents are contributing a major chunk of the cash?0 -
Yes:
Yes:
.........................0 -
marliepanda wrote: »It's about one step away from.
I have one home and I'm buying a second one. Do I have to pay the second home stamps duty?!??!?!?!?!! Why?!?!?!
It's not even that......I was wondering if anyone could tell me whether i'd be subject to paying second home stamp duty with me already having a home.
Our circumstances are:
...
Me: Married, living ... in a house with a mortgage
Would the new house be classed as a second home for me? and would I be subject to paying stamp duty on the entire purchase price as a result...0 -
Thanks for the insults folks.... I know very little about this subject and with it being a family member i didn't know if the rules were different.
Maybe when you come asking questions about my specialist subject, i'll wonder how you get through the day too!
Anyway, thanks for the warm welcome.0 -
Thanks for the insults folks.... I know very little about this subject and with it being a family member i didn't know if the rules were different.
Maybe when you come asking questions about my specialist subject, i'll wonder how you get through the day too!
Anyway, thanks for the warm welcome.
It's not a family member though. By the sounds of it they're gifting you a big chunk of money in return for living in the house that's mostly theirs.
It's not their house. It's yours!0 -
The people who answered may have seemed rude
The answer was so obvious the question didn't need asking.It may sometimes seem like I can't spell, I can, I just can't type0 -
Can I respectfully and gently point out this isn't a forum of specialists where you pay for help.Thanks for the insults folks.... I know very little about this subject and with it being a family member i didn't know if the rules were different.
Maybe when you come asking questions about my specialist subject, i'll wonder how you get through the day too!
Anyway, thanks for the warm welcome.
Answers given are from members of the public and others, who give information and time completely free.
As a consequence, you have to take the rough with the smooth as the answer to this can be found in several different places (such as the HMRC site) and even a simple search on here as it is asked very, very regularly.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks for the insults folks.... I know very little about this subject and with it being a family member i didn't know if the rules were different.
Maybe when you come asking questions about my specialist subject, i'll wonder how you get through the day too!
Anyway, thanks for the warm welcome.
It's very simple.
You own one property now.
You will own two properties at the end of this.
Yes, you pay the 3%.
The 3% is payable on any purchase which increases the number of properties you own beyond one, no matter what, whether you will live there or not.
The 3% is only not payable if you already own more than one, and are not increasing the number of properties, just replacing your current main residence.0 -
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have you taken legal advice to do it this way?
because it is a CGT/IHT (and care home) disaster waiting to happen.
Unless the parent is paying you full market rent (on which you will have to pay IT) it will be a "gift with reservation" which will not be effective for IHT avoidance, nor possibly care home fees avoidance)
and because the person who is living in it as their main home does not own it, it wont be eligible for CGT PPR exemption when you sell it.
worst of all worlds0
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