Buy house in one name, shared equity contractually?

Craig660

getmore4less wrote: »

SDLT is based on beneficial ownership.

That my might mess up to the tax evasion plan

So the contract we have in place would somehow need to be declared? To HMRC ?

Craig660

SDLT_Geek wrote: »

It does not help for SDLT to have the property !!!8220;in the name of!!!8221; one person if beneficially it belongs to two people, the other of whom is not a first time buyer.

Apologies, but can you please clarify what you mean

AnotherJoe

Craig660 wrote: »

No we are both FTB, but we also want the option to buy a second property without any stamp duty

Thanks

That won't work unless you have bought both properties before getting married,

getmore4less

Craig660 wrote: »

So the contract we have in place would somehow need to be declared? To HMRC ?

That's the way taxes work in the UK you need to know what you are supposed to be paying.

You need to review your understanding of SDLT and how it is calculated.

SDLT_Geek

Craig660 wrote: »

Apologies, but can you please clarify what you mean

SDLT is due from a purchaser. So you must first identify the purchaser. This is not as simple as seeing in whose name the property is to be registered. One looks through to the true underlying owners, that is the beneficial owners. They are the people who would be entitled to the rent, or to the sale proceeds if the property is sold for a sum exceeding the mortgage debt.

So if a property is bought in the name of A alone, but holding on trust for A and B, then A and B are the purchasers. Whether first time buyers' relief and whether the higher rates of SDLT apply will depend on the circumstances of both A and B.

WorkingTowardsDebtFree

Craig660 wrote: »

I agree with what you are saying and it is in fact the other way around but my partner doesn't see it this way.

Fair do's... And apologies for jumping to a different, and wrong, conclusion!

firstbuyer

So how and where could I get this legally binding agreement?

Ask your solicitor for a declaration of trust.