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Second home or not question
looroll199
Posts: 24 Forumite
Hi all
My fianc! owns two properties, both rented out. He moved in with me in December 2016, rented out his former home along with a buy to let property he owns.
We are now looking to buy a property together, selling the one we both live in which is in my name only. His name is on the council tax bill plus various other things registered to this address.
The question is, would the home we share together be classed as his main residence and we could therefore avoid the second home stamp duty tax?
I have searched on the Gov.uk website and other sites but can't find anything that replicates our situation. We are co-habiting not married and not in a civil partnership.
Apologies if this has already been answered somewhere
My fianc! owns two properties, both rented out. He moved in with me in December 2016, rented out his former home along with a buy to let property he owns.
We are now looking to buy a property together, selling the one we both live in which is in my name only. His name is on the council tax bill plus various other things registered to this address.
The question is, would the home we share together be classed as his main residence and we could therefore avoid the second home stamp duty tax?
I have searched on the Gov.uk website and other sites but can't find anything that replicates our situation. We are co-habiting not married and not in a civil partnership.
Apologies if this has already been answered somewhere
0
Comments
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He is buying a property (jointly).
He already owns another property (let out).
He is not selling his main residence.
Additional SDLT is chargeable.0 -
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Hmmm
Does that mean his main residence is not necessarily where he lives?0 -
The home you share is very likely his only residence.
But that gets him nowhere towards escaping the higher rates of SDLT. That is because he does not own it and therefore is not disposing of a major interest in it.0 -
Of course his residence is where he lives! There has to be a "sufficient degree of permanence and expectation of continuity" to turn mere occupation into living in a property as his "residence".0
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looroll199 wrote: »can I ask why his main residence is not where he has lived for the last 2 years?
Residence would be defined as a permanent home. As all the other properties that he owns have been let out. Rather difficult to reside in them. HMRC aren't daft. They'll be fully aware of the stunts that people will attempt to avoid paying due tax.0 -
looroll199 wrote: »Thank you - can I ask why his main residence is not where he has lived for the last 2 years? How do the HMRC define main residence?
It is his main residence, but he's not selling it because it doesn't belong to him.0 -
Thanks everyone, just looking at any options
Seems unfair that the extra stamp duty is paid on the whole purchase price of the new property when my partner will only own one third of it. Perhaps I should buy it all and save a few thousand ££££s0 -
The home you share is his main residence. But, upon buying the new property, he'll simply be moving out of his current home, not selling it as he doesn't own it. In order to get the exemption on second home stamp duty, he'd need to replace his main residence ie own and then sell.looroll199 wrote: »Thank you - can I ask why his main residence is not where he has lived for the last 2 years? How do the HMRC define main residence?
You could, if you can pass affordability for the whole mortgage. Also, is partner contributing any money to the deposit? Most lenders require a 3rd party gifting a deposit to state they have no claim on the property or gifted sum, and not live in the property.looroll199 wrote: »Thanks everyone, just looking at any options
Seems unfair that the extra stamp duty is paid on the whole purchase price of the new property when my partner will only own one third of it. Perhaps I should buy it all and save a few thousand ££££s0 -
looroll199 wrote: »Thanks everyone, just looking at any options
Seems unfair that the extra stamp duty is paid on the whole purchase price of the new property when my partner will only own one third of it. Perhaps I should buy it all and save a few thousand ££££s
Boo hoo. Yes it is so unfair that someone who already owns 2 properties will have to pay the higher rate of SDLT for the purchase of residential properties when purchasing a 3rd, aka an additional, residential property.
He could easily avoid it by selling the other properties.0
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