Second property and stamp duty question

00ec25

capital0ne wrote: »

I wouldn't trust any answer given here. Go and see a solicitor or a taxation specialist who is experienced in second property ownership and CGT - it will cost you but could save you a considerable amount in the long run

LOL, well I would because I know that all 3 people who replied have read the SDLT guides and manual and are giving the correct answer. Indeed in the case of SDLTgeek we have already had instances where their advice was more accurate than a solicitor's.

https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09730

https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers-guidance-note

https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property

https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

bikeman17

I'm going to call The Money Advise Service to get clarification. Based on their online calculator as this will be my next home I'm not excempt but will pay 1.49%

Pixie5740

I shall probably regret asking this.....

Who collects the rent from Property 1 and declares the rental income on their tax return? You? Your brother? Both of you?

00ec25

bikeman17 wrote: »

I'm going to call The Money Advise Service to get clarification. Based on their online calculator as this will be my next home I'm not exempt but will pay 1.49%

a calculator is only as good as the data you input to it. Just the same as the advice you'll get on the phone will only be as good as the facts you tell them about

Since there is no such 1.49% rate I assume that is the net % including the 0% banding. The whole point is "not exempt" in what context? You purchasing an additional property or you purchasing one after having sold the previous?

One answer does not fit all

00ec25

Pixie5740 wrote: »

I shall probably regret asking this.....

Who collects the rent from Property 1 and declares the rental income on their tax return? You? Your brother? Both of you?

Op has stated:

bikeman17 wrote: »

Property 1 which is on let was only owned by me. We both owned the property together at once then I had it in my name and now wish to give him it back.

the only person with an entitlement (beneficial interest) to the income is the OP

00ec25

Pixie5740 wrote: »

Yes but the OP also claims to have no interest in the property. Could be he's the legal owner but not the beneficial owner although I doubt it.

I doubt it, given Op's standard of English, I interpreted his use of "interest" was in the context of him reading the question about "share" and thus explaining that he is now sole owner and that there are no "shares"

Pixie5740

This is confusing. You changed your reply by the time I'd posted my reponse which I've now deletered. Arghhh!

bikeman17

I had online chat with the Money Service and based on the question they asked, they used their online calculator, comment below:

Nicole said:
Okay. Because it's a joint property and you have previous owned a property, you will be charged £4,250.00 on a property valued at £285,000. This is at an effective tax rate of 1.49%. You can clarify this on our Stamp Duty calculator by clicking the link below: https://www.moneyadviceservice.org.uk/en/tools/stamp-duty-calculator
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00ec25

bikeman17 wrote: »

I had online chat with the Money Service and based on the question they asked, they used their online calculator, comment below:

Nicole said:
Okay. Because it's a joint property and you have previous owned a property, you will be charged £4,250.00 on a property valued at £285,000. This is at an effective tax rate of 1.49%. You can clarify this on our Stamp Duty calculator by clicking the link below: https://www.moneyadviceservice.org.uk/en/tools/stamp-duty-calculator
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i don't need an online calculator to do
0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £35,000 = £1,750
total 4,250

but that isn't the point.
The point is should the higher rate apply.
Did they answer that question based on you giving them full info as already explained on here and therefore confirm which of the 3 options you should select in their calculator?

bikeman17

The first option on the online calculator is the only drop down selection that gives you this value of stamp duty tax