Stamp Duty - that old chestnut

SueC_2

Doozergirl wrote: »

SDLT is payable on the portion that you purchase.

You're not getting it though. If you marry and you work out what your collective "pot" is rather than your individual "pots" in the case of death then you avoid it altogether. The will is needed anyway.

This is MSE, after all.

Am I reading that right? If we get married I avoid stamp duty altogether?


I do get that a will is needed anyway, it's just I need to work out what's happening while we're both alive before I start worrying about what happens after we die!

Lokolo

SueC wrote: »

Am I reading that right? If we get married I avoid stamp duty altogether?


I do get that a will is needed anyway, it's just I need to work out what's happening while we're both alive before I start worrying about what happens after we die!

If you get married before the purchase of the property I believe you can get your share on it during the purchase without the additional stamp duty. You count as one unit when married.

So as one unit, you would sell his property and purchase the new property, so no additional stamp duty. (I'd be grateful if someone can confirm my thinking!)

Without being married, when you want to purchase you share, higher rate stamp duty is due on your share.

SueC_2

Purchase of the property is due to complete in the next few weeks, with no chance of us getting married before then, so that ship's sailed. It's just the best way of me buying in at a future date that needs working out.

Doozergirl

SueC wrote: »

Purchase of the property is due to complete in the next few weeks, with no chance of us getting married before then, so that ship's sailed. It's just the best way of me buying in at a future date that needs working out.

Before you purchase any of it, not before your partner does!

SueC_2

Doozergirl wrote: »

Before you purchase any of it, not before your partner does!

Ooooohhhhhhh...... so......


He buys the new house.
I rent my house out.
I move into his house.
We get married.
I buy into his house and it becomes our house.
No stamp duty due?

SDLT_Geek

SDLT can be due on transactions between married couples, such as wife buying a 25% share from her husband. But the good news is that if this is done after 22 November 2017 the higher rates of SDLT will not apply. So if the "chargeable consideration" is under £125,000 no SDLT will be due.


Take it with a pinch of salt if anyone says "spouses are treated as a unit". It is not true for SDLT!


"Chargeable consideration" is usually the sum paid and a proportion of the mortgage debt.

SueC_2

SDLT_Geek wrote: »

SDLT can be due on transactions between married couples, such as wife buying a 25% share from her husband. But the good news is that if this is done after 22 November 2017 the higher rates of SDLT will not apply. So if the "chargeable consideration" is under £125,000 no SDLT will be due.


Take it with a pinch of salt if anyone says "spouses are treated as a unit". It is not true for SDLT!


"Chargeable consideration" is usually the sum paid and a proportion of the mortgage debt.

Thanks. I thought it sounded too good to be true!

SueC_2

SDLT Geek - from your name I'm guessing this is your specialist subject!



We are completely flexible re. timeframes and the order of doing things etc, is there any 'best' way to do it, or do all paths lead to the same conclusion?


Many thanks.

SDLT_Geek

One thing not to do would be to get married before your partner's purchase. That would probably mean an extra 3% on the entire purchase price!


Another thing to avoid would be to put in any money now to his purchase so that (even if not "on the title") you have an underlying share in the house from the start. Again that would probably bring the 3% on his head.


If it works for you, then it might well be best for SDLT purposes to "buy into" the house only after you are married.

SueC_2

SDLT_Geek wrote: »

Another thing to avoid would be to put in any money now to his purchase so that (even if not "on the title") you have an underlying share in the house from the start. Again that would probably bring the 3% on his head.

That raises a couple of questions:


- How would that ever get discovered?
- What if I had just loaned him some money, with an offical loan agreement in place?