Married Couple, Wife first time buyer

SKiPpPpY

Is there a website you recommend looking up where this is spelt out, if it is true?

I'm also in similar boat, and wondering whether to buy in a rush before getting married to avoid second home stamp duties.!

THank you!

Pixie5740

mailmannz wrote: »

How so?

She isn't listed as an owner in that other property right? So why would she pay second home stamp duty for that BUT not pay stamp duty because she is considered a first time buyer?

Regards

Mailman

Go wild and read both the Guidance Note for the purchase of additional residential properties and the Guidance Note for the SDLT relief for FTB if you want to find out why.

Tom99

[FONT=Verdana, sans-serif]Read the detailed guidance note if you don't believe what others are saying.

[/FONT] [FONT=Verdana, sans-serif]https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers[/FONT]

[FONT=Verdana, sans-serif]https://www.gov.uk/government/publications/stamp-duty-land-tax-higher-rates-for-purchases-of-additional-residential-properties[/FONT]

AnotherJoe

mailmannz wrote: »

How so?

She isn't listed as an owner in that other property right? So why would she pay second home stamp duty for that BUT not pay stamp duty because she is considered a first time buyer?

Regards

Mailman

Because that's what the rules say !!!

Don't make your own laws up, read up about it if you dont believe it.

agrinnall

I thought paddycharlie might have been a bit harsh in post #8 but it seems not!

TON

So I am in the same situation and I have read the gov.uk guidance. At best it is unclear about married couples and only talks about "individual and individuals".

"A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.

Surely this allows a wife to purchase a property as an individual as a different first time buyer especially when the husband owns a house he bought before they married?

Pixie5740

TON wrote: »

So I am in the same situation and I have read the gov.uk guidance. At best it is unclear about married couples and only talks about "individual and individuals".

"A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.

Surely this allows a wife to purchase a property as an individual as a different first time buyer especially when the husband owns a house he bought before they married?

You must be reading different sets of guidance notes to me then.

Relief is not available if the purchase is of an additional dwelling, which is liable to the
higher rates of SDLT under schedule 4ZA FA 2003

Source: Stamp Duty Land Tax: Relief for first time buyers

If one of the married couple already own a residential property, which they will not be disposing of beofre buying another residential property, then the higher rate of SDLT will apply meaning that the spouse who has never owned a residential property will not meet the conditions of being a first time buyer.

keithcheuk

My wife and I have recently purchased a property and we are in a similar situation as yours. I have done some research on this matter and with the help with a solicitor, this is the conclusion:

- Your wife will have to be the sole owner of the new property. Since you have no interest in the new property, it makes no sense for HMRC to factor you in for the higher SDLT, and your wife should be eligible as FTB
- The only issue is if you are taking out a mortgage loan for this property. As you will have no interest in the property, lender will be reluctant to loan based on a single income. Even if you are registered as a guarantor, your liability is still different from that as an owner and that will still be a problem.

As for previous posts that suggested that HMRC will take your marital relationship into account does not make sense at all. Your wife could be purchasing a property with another FTB as shared owners without you being in the equation at all and still be eligible as FTB. It does not make sense at all to include you if your name does not appear anywhere in any legal documents or whatsoever.

Also an additional information if it is relevant: At no time during the transaction did they asked us to produce proof of our marriage certificate. In the eye of the law, my wife and I are just two individuals purchasing a shared interest in the property.

Hope these information helps.

Pixie5740

keithcheuk wrote: »

My wife and I have recently purchased a property and we are in a similar situation as yours. I have done some research on this matter and with the help with a solicitor, this is the conclusion:

- Your wife will have to be the sole owner of the new property. Since you have no interest in the new property, it makes no sense for HMRC to factor you in for the higher SDLT, and your wife should be eligible as FTB
- The only issue is if you are taking out a mortgage loan for this property. As you will have no interest in the property, lender will be reluctant to loan based on a single income. Even if you are registered as a guarantor, your liability is still different from that as an owner and that will still be a problem.

As for previous posts that suggested that HMRC will take your marital relationship into account does not make sense at all. Your wife could be purchasing a property with another FTB as shared owners without you being in the equation at all and still be eligible as FTB. It does not make sense at all to include you if your name does not appear anywhere in any legal documents or whatsoever.

Also an additional information if it is relevant: At no time during the transaction did they asked us to produce proof of our marriage certificate. In the eye of the law, my wife and I are just two individuals purchasing a shared interest in the property.

Hope these information helps.

What is the opposite of helpful?

Tom99

keithcheuk wrote: »

- Your wife will have to be the sole owner of the new property. Since you have no interest in the new property, it makes no sense for HMRC to factor you in for the higher SDLT, and your wife should be eligible as FTB

I think you should change solicitor.

"Where an individual with a spouse or civil partner purchases an interest in a dwelling and their spouse or civil partner is not a joint purchaser, the spouse or civil partner will be treated as a joint purchaser in respect of the transaction [Para 9]. This means that where a purchaser is married or in a civil partnership, if Conditions A to D are met by either the purchaser or their spouse or civil partner, the transaction will be a higher rates transaction."

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09820