Any Options To Avoid Additional Stamp Duty?

[Deleted User]

Well it looks like anything you can to avoid paying what you should to be honest.

You own a property. Loopholes have been mainly closed.

If you want to own two properties you have to pay the extra SDLT.

If you can afford to own two properties, I suspect you can find a way to pay the tax. If you can't., don't get involved in the second property. You only need one to live in.

System

Pixie5740 wrote: »

I think it's one of the easier tax guides to read especially as it has the examples in the last few chapters. Examples like this one in Chapter 9:

Thank you. I think that makes sense. I will think on it some more and re-read the guidance.

marliepanda

ConGirlRed wrote: »

Wow! I am asking for advice. Not a guilt trip when you have no clue about what I have done to achieve what I have!

Well you haven’t done enough to be able to pay the stamp duty without being ‘baffled’ so keep trying...

G_M

noddynoo wrote: »

For goodness sake you have stakes in multiple properties whilst some people are sleeping in doorways Play the bloody tax

I think 'playing' is exactly what the OP is doing....

shirlgirl2004

Simply you can't gift the house to your mother as stamp duty (SDLT) will be payable. If you buy another house without selling the current one you will pay 3% extra SDLT. It really is that simple. You could move back into your house to make it your main residence and then buy another whereby you will have to pay the extra 3% SDLT. You could claim back the extra 3% SDLT if you sold the house your mother lives in within 3 years. Capital gains will be payable on the sale of your house except for any gain during the time you lived there plus an additional 18 months is ignored.

Crashy_Time

noddynoo wrote: »

Its not an achievement it is a ponzi scheme which has left many people unable to buy their own home and many more due to lose or be in negative equity once rates rise. Pay up that is advice

Good advice :T

saajan_12

ConGirlRed wrote: »

My head is melted trying to get round paying stamp duty on a 2nd property so I hope some of you can help!

I own my house; about 40% of the value outstanding on the mortgage. Out of mortgage term so on a variable rate. My mum lives there but she also owns an inherited property from my Step Dad. - so you're mum's Landlord. Note you need to pay income tax on anything she pays you to live there and fulfill all landlord responsibilities including eg gas safety certs, repairs..

I live part time in a rented room in a house share. I haven't changed any of my bills or banking over to my rented address!!!8230; just let them go to my mortgaged house and my mum forwards anything important, as I have moved rented accommodation 3 times in 2 years and couldn!!!8217;t be bothered changing everything every time. - make sure you atleast change your driving licence, this has to be where you live. Also have you notified your mortgage lender that you're letting to your mum? Many require you apply for Consent to Let or a Regulated BTL mortgage to let to family members.


My boyfriend owns his house; His only property. My boyfriend and I want to buy together. He will sell his house. I want to keep mine and continue paying the mortgage!!!8230; as my mum lives there, but it is in my name.

How do I buy a house with my boyfriend with avoiding the stamp duty on a 2nd property? - if you own one house, don't sell any and buy another then you have the higher stamp duty, full stop.


I am thinking I can switch my bills and banking to my current and hopefully last rented property address, but my name is still on the deeds and I still pay the mortgage for my house, so it will probably still be seen as my main residence, even though I haven!!!8217;t been for 2 years. Is there a way to prove its not my main residence? - where your bills go isn't sufficient to argue main residence, its a determination on facts. Besides its irrelevant, main residence only comes in when you're selling a property. You want to keep your only other house.

I was debating gifting my house to my mum and she leaves it back to me in her will, while I continue to pay the outstanding mortgage, but if I do that, she may be liable for Stamp Duty on a 2nd property as she already owns an inherited property. - you will be liable for Capital Gains Tax when you gift it as its not your primary residence. Then Mum's estate will be liable for inheritance tax if above the threshold, which is likely much more than the 3% SDLT. Plus you may not get all of it if mum needs care later in life. Non starter

Does anyone have any ideas on how I can get round this, without having to sell my house and make my mum go back to her inherited property? - if she doesn't want to live in her inherited property, why not sell it and buy the one she lives in from you? Then you'll be free to buy with bf without extra 3%, she'll own her own home so no extra hassle getting you involved with repairs..

Thanks everyone!

Pixie5740 wrote: »

Get married and move in with your boyfriend/husband. Then sell the property he owns and then buy a new home together.

Maybe.. terrible reason to get married, but if you did then you both have an interest in both bf's and your house. You move in to husband's house so that becomes your joint main residence (as a married couple you can only have one main residence) and then sell that and buy another.

ConGirlRed wrote: »

We have discussed that, but I assumed it wouldn't change if we are married or not as I still own a property in my name only which I would rather keep.

Just want to clarify... so if my house IS my main residence I am obviously liable for the 3% but I CAN claim it back. -
only if you actually sell it
If it IS NOT my main residence I am liable for the 3% as I own it, but CANNOT claim it back?
Seems I am damned if I do and damned if I don't.

How so? The idea is if you're just selling / buying main residence then no higher rate. It only comes in if you're increasing the number of properties (which you are) or buying a non main residence. Assuming you see "paying higher rate SDLT" as being "dammed" then yes you're dammed if you do increase the number of homes, but NOT dammed if you don't. Problemo?

Crashy_Time

ConGirlRed wrote: »

We have discussed that, but I assumed it wouldn't change if we are married or not as I still own a property in my name only which I would rather keep.

Just want to clarify... so if my house IS my main residence I am obviously liable for the 3% but I CAN claim it back.
If it IS NOT my main residence I am liable for the 3% as I own it, but CANNOT claim it back?
Seems I am damned if I do and damned if I don't.

No, you are just being taxed under the guidelines that exist for taxing property. Property is too juicy a target for the government to resist now as a tax target, one because there are loads of easily traceable owners, and two because there are loads of votes now in being seen to target landlords and multiple property owners. It is probably going to get worse in future IMO.

SDLT_Geek

It is quite possible that your property owning history means the 3% SDLT surcharge is not due anyway due to the replacement exception. It depends on the detail. This is the kind of thing that matters:


1. Did you own or have a share in another property before the one your mother lives in now?
2. Did you live in that on a permanent enough basis for it to count as your main residence? If so, for what period?
3. When did you dispose of that other property?
4. When did you acquire the house where your mother now lives?
5. Did you intend to live in it as your only or main residence at the point you completed its purchase?
6. Did you in fact live in that on a permanent enough basis for it to count as your main residence?
7. Will you be completing your upcoming purchase with your boyfriend by 26 November 2018?
8. Do you intend to live in that on a permanent enough basis for it to count as your main residence?