Additional stamp duty

MulvEdg

I am confused over the new additional stamp duty rules and would appreciate your help.

My partner has a flat that was his main residence until he moved into my house (which I own with my sister). We now want to buy our own property as we got married a few months ago and my sister will buy us out of the property. As he still has the first flat will we be subject to the additional stamp duty charge?

We need to hold onto the flat as it is a Right to Buy property and have a charge on the deeds for 5 yrs.

Thank you!!

kinger101

Are you married?

dunroving

kinger101 wrote: »

Are you married?

The OP said they were married.

From previous posts on the subject, additional duty is due on a second property bought by a married couple, regardless of which one owns the first and second properties, or the marital status when the first property was purchased. You then have 3 years to sell the first property in order to claim back the additional duty paid on the second property.

AnotherJoe

dunroving wrote: »

The OP said they were married.

From previous posts on the subject, additional duty is due on a second property bought by a married couple, regardless of which one owns the first and second properties, or the marital status when the first property was purchased. You then have 3 years to sell the first property in order to claim back the additional duty paid on the second property.

[STRIKE]I'm not so sure as he isn't replacing his main residence, unless the move out was so recent it is still registered as such ?[/STRIKE]

EDIT: Missed that OP was replacing his main residence so is OK.

Pixie5740

No the higher rate will not apply. A married couple can only have one main residence in terms of SDLT and the main residence is where you currently live. As you are replacing your main residence with a different main residence the higher rate of SDLT will not apply.

It's all explained in the guidance note.

kinger101

Replacing main residence, therefore higher rate does not apply.

Tom99

kinger101 wrote: »

Replacing main residence, therefore higher rate does not apply.

But the partner is not replacing main residence because they don't own it only the OP does?

00ec25

Tom99 wrote: »

But the partner is not replacing main residence because they don't own it only the OP does?

it does help to have read the guidance before posting...

Example 1
Mr and Mrs S, a married couple, each own a residential property, with neither having any interest in the other’s property. They both live in the property owned by Mrs S: the property owned by Mr S is rented out. Mrs S is selling her property and they are jointly purchasing a new one, which will be their new main residence. Mr S will retain his rented out property.

The higher rates will not apply to the joint purchase by Mr and Mrs S of a new main residence. As they are married and have both lived in the property owned by Mrs S as their main residence they will both be treated as replacing their main residence.

dunroving

Good catch. I presume it will depend somewhat on being able to establish that Mrs S's house (OP's house) truly is Mr S's main residence - the OP doesn't state how long ago he moved in. Presuming it was some time around or before they got married (several months ago), all should be fine.

00ec25

dunroving wrote: »

I presume it will depend somewhat on being able to establish that Mrs S's house (OP's house) truly is Mr S's main residence - the OP doesn't state how long ago he moved in.

not in the slightest, you have overlooked the fact they married before the new property is being purchased...

Example 2
Mr P and Ms B, who are not married to one another, each own a residential property, with neither having any interest in the other!!!8217;s property. They both live in the property owned by Ms B: the property owned by Mr P is rented out. Ms B is selling her property and they are jointly purchasing a new one, which will be their new main residence. Mr P will retain his rented out property.
The higher rates will apply to the joint purchase of a new main residence by Mr P and Ms B. As they are not married (or in a civil partnership) Mr P will not be treated as replacing his main residence as, even though he has been living in the property owned by Ms B, he has no interest in the property Ms B is selling.

Example 10
Mr I is transferring 50% of a buy-to-let property that he owns to his wife, Mrs I. Mrs I is paying some cash and taking over responsibility for half the mortgage debt. Mrs I owns no other residential property but Mr I owns a number of other buy-to-let properties.
The higher rates will apply to the transfer as Mr I owns other residential properties. As a married couple other residential property owned by either spouse is taken in account in determining whether the higher rates apply.

Example 11
Mr and Mrs X jointly own two properties; they live in one as their main residence and rent the other out. Mr X is transferring his share in their main residence to his wife, who will take over sole responsibility for the mortgage.
The higher rates will apply as Mrs X owns an interest in another residential property and is not replacing her main residence. The higher rates will apply to the value of the mortgage taken over by Mrs X.

only if there were separated would what is hers is mine, and what is mine is hers, not apply

3.46 This treatment does not apply if the married couple are either legally separated (by court order or deed of separation) or they are, in fact, separated in circumstances in which the separation is likely to be permanent.

dunroving

OK, I'll butt out before I cause even more confusion.