We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

SDLT - Higher Rate Payable?

Both myself and my partner own properties in our own names from before we got together. We now want to buy a property together. She will be selling her house and we want to keep mine as a buy to let as rents are sky high in my area and more than cover the mortgage.

Obviously I will be joint owners on our new home, where do I stand with Stamp Duty as I will own 2 homes, one in my name and one jointly. Will we be liable for the higher rate on all of the purchase price or just my share, we will be holding as tennants in common to protect the shares we are each putting in. SO I will own 35% of the house so will we only need to pay the higher rate on the 35% I own??

Comments

  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Myself and partner = married or not?
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    edited 10 August 2017 at 11:23PM
    I take it you have never read the guide as your scenario is one of the basic ones explained therein ...

    - joint purchase (married or not is irrelevant)
    - his existing property not being sold, it is being kept and let
    - her place being sold not owned by him therefore is not a replacement of his main home
    - he is buying an additional property

    higher rate payable on the whole purchase price. There is no his 'n her share split

    https://www.gov.uk/government/publications/stamp-duty-land-tax-higher-rates-for-purchases-of-additional-residential-properties

    3.42 Where a transaction is entered into by joint purchasers the higher rates will apply if the transaction would be a higher rates transaction for any of the purchasers considered individually. So if there are two individual purchasers and Conditions A to D are all met for one of them only, the transaction will be charged at the higher rates.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Lokolo wrote: »
    Myself and partner = married or not?
    Not relevant.

    One of the joint owners is purchasing a 2nd property without replacing an existing main home.

    3% additional SDLT is payable.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    Has this question ever been asked without the answer being "Yes, you will have to pay the extra?" If it has then it's certainly a lot rarer than the other way round!
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    agrinnall wrote: »
    Has this question ever been asked without the answer being "Yes, you will have to pay the extra?" If it has then it's certainly a lot rarer than the other way round!
    has this question ever been answered without the counter question why have you not read the guide and why do you think your situation is not covered in it

    sadly, no
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.3K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.3K Work, Benefits & Business
  • 604K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.