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Stamp Duty Confusion from Broker
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amorv
Posts: 15 Forumite
Hi,
I am looking to move home quite soon and my mortgage broker is scaring me with the stamp duty figure he is throwing at me! I wanted to clarify it...
I am married and the home we live in is under a mortgage in my name only.
My wife owns two other houses, both of which are let out. She has never lived in them, they were bought for the purpose of renting out, and she bought them before we were married.
We are looking to sell our current house and buy a new house at a value of around £400k. My broker says that the stamp duty will be subject to the additional rate, which takes it from £10k to £20k!
Quote from the broker:
The gov stamp duty calculator says it will be 10k, which is what I believed as it's replacing our residence.. https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
Could anyone help clear this up...
I am looking to move home quite soon and my mortgage broker is scaring me with the stamp duty figure he is throwing at me! I wanted to clarify it...
I am married and the home we live in is under a mortgage in my name only.
My wife owns two other houses, both of which are let out. She has never lived in them, they were bought for the purpose of renting out, and she bought them before we were married.
We are looking to sell our current house and buy a new house at a value of around £400k. My broker says that the stamp duty will be subject to the additional rate, which takes it from £10k to £20k!
Quote from the broker:
As long as [your wife]owns a property, you will not be exempt from the higher stamp duty.
If you own a property and keep it and buy a new property, you pay the higher stamp duty. If you own a property and will live, with your spouse, in a property that they are buying, you pay the higher stamp duty.
The gov stamp duty calculator says it will be 10k, which is what I believed as it's replacing our residence.. https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
Could anyone help clear this up...
0
Comments
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What your broker says is correct. If another other property is owned by either party purchasing the house, you will be liable to pay additional Stamp Duty.
The only way aroundit would for you to purchase it as an individual and not have your wifes name on teh Deeds or mortgage.0 -
fromtheshires wrote: »What your broker says is correct. If another other property is owned by either party purchasing the house, you will be liable to pay additional Stamp Duty.
The only way aroundit would for you to purchase it as an individual and not have your wifes name on teh Deeds or mortgage.
Could you explain the gov calculator then? it specifically asks if we own more than one property?
I mentioned to the broker we are happy to have it in my name only, and he said that wouldn't make a difference and would still be the higher charge..0 -
If you are replacing your main home the additional SDLT does not apply, provided at the end of the transaction you (jointly) own the same number of properties.0
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A married couple is a single unit.
The unit currently owns three properties.
After completion it will still own three properties.
The surcharge does not apply.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, awaiting my brokers response!0
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Perhaps you should direct your broker to HMRC's Guidance Note about the higher rate of SDLT.0
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I wonder if the confusion was because the wife does not own the current home being sold so on paper she is going from owning two to three but as other poster said treated as one unit.0
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err no the broker is wrong for the reasons explained, marriage = 1 unit, not 2 individual ownersfromtheshires wrote: »What your broker says is correct. If another other property is owned by either party purchasing the house, you will be liable to pay additional Stamp Duty.
The only way aroundit would for you to purchase it as an individual and not have your wifes name on teh Deeds or mortgage.
perhaps both you and the broker should read the guide again?0
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