Second Home SDLT

CPidsley

My girlfriend and I are looking to buy a house together. I do not have a house (well it is being sold). She does have a house.

We wish to buy another house to live together in. She would like to rent our her own home. I believe this makes us second home buyers and thus we will be charged the second home SDLT!

I have been told that if I also own a house (therefore we both have our own houses) and then buy a house together to live and rent out or our own houses (1 each) we do NOT have to pay second home SDLT?

Can anyone advise if this is correct?

Thanks.

ViolaLass

So if one of you owns a house = extra stamp duty
but if both of you own a house = no extra SD?

Sounds pretty unlikely.

Pixie5740

Q) How many properties does your girlfriend currently own?

A) 1

Q) How many properties will your girlfriend own at the end of the transaction?

A) 2

Q) Is 2 greater than 1?

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09735

CPidsley

Thats what i thought, but it was explained to me in that way. It would seem more logical, if one of us sold our second house. Therefore after all transactions, still two houses.

CPidsley

So if she has a house to rent and I have a house rent and we then buy a home together (3 houses between us)?

Pixie5740

CPidsley wrote: »

So if she has a house to rent and I have a house rent and we then buy a home together (3 houses between us)?

Sorry what's the question? Have you read the HMRC manual?

davidmcn

CPidsley wrote: »

I have been told that if I also own a house (therefore we both have our own houses) and then buy a house together to live and rent out or our own houses (1 each) we do NOT have to pay second home SDLT?

Who told you this?

CPidsley

Thank you for being so polite. I was just making sure that I had explained the scenario correctly.

Manuals are manuals, loop holes are to be exploited. I wish.

G_M

If you were to own four houses together (whether each is owned jointly or separately) at the end of the most recent transaction, then by renting out property number two (but note, not the first property purchased chronologically) then you could reclaim the additional 3% SDLT after a period of 18 months (but not later than 15 months).

es5595

The only possibly way to 'get around' the SDLT is by marrying your girlfriend, as then you would meet the requirements of this scenario;

SDLT - higher rates for additional dwellings: Condition D - further examples
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.

Full info at; https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09810

CPidsley

Thank you for that explanation, Very clear. Is there a minimum period that the solely owned property has to be owned prior to sale (when purchasing the new joint marital home)?