Land Tax Wales

judegirl

Hi

I was wondering if anyone can help me.

I am buying a house which will be my main residence, currently living with parents. I own another house so know there is Land Tax to pay, the other property I own is rented out and I own 50% of the house.

I have spoken with a few solictors and some say I have to pay and some say I dont have to pay it. So unsure?

My question is surely I only have to pay 50% of the amount due because I only owe half the house, I have explained this and they say I need to pay it all. If the other person i part own a house with buys another and has to pay 100% then they will been having twice the amount of tax, wouldnt they?

Thanks in advance

Tom99

[FONT=Verdana, sans-serif]How much is your 50% worth? I am not sure if the £40k min value of the house you are keeping also applies in Wales.[/FONT]
[FONT=Verdana, sans-serif]If you are liable for the extra 3% then it's 3% on your purchase price, it's not graded according to the value of your other property.[/FONT]

moneyistooshorttomention

There are some solicitors that aren't very good....

Maybe the ones that are saying you'd have to pay the other persons half share - ie as well as your own share - have in mind some sort of provision about "jointly and severally liable"??

Don't know if this sort of thing would apply to that tax. "Jointly and severally liable" in other contexts means you ARE only liable for your own share - but they could come after you for the other persons share if they don't pay up what they are due to I believe.

Which, in reverse, would mean they could go after the other person for your share if you didn't pay it.

Worth investigating whether that is what those solicitors mean that say you'd be due for the lot.

Must admit that if I need a solicitor ever again - I'll be looking for a big firm in one of the Welsh cities and that has branches in England as well. That way I'd feel most confident I was getting accurate advice.

Tom99

moneyistooshorttomention wrote: »

There are some solicitors that aren't very good....

Maybe the ones that are saying you'd have to pay the other persons half share - ie as well as your own share - have in mind some sort of provision about "jointly and severally liable"??

Don't know if this sort of thing would apply to that tax. "Jointly and severally liable" in other contexts means you ARE only liable for your own share - but they could come after you for the other persons share if they don't pay up what they are due to I believe.

Which, in reverse, would mean they could go after the other person for your share if you didn't pay it.

Worth investigating whether that is what those solicitors mean that say you'd be due for the lot.

Must admit that if I need a solicitor ever again - I'll be looking for a big firm in one of the Welsh cities and that has branches in England as well. That way I'd feel most confident I was getting accurate advice.

[FONT=Verdana, sans-serif]Have you misunderstood the situation?[/FONT]
[FONT=Verdana, sans-serif]The OP owns a property jointly with another party. They are now buying an additional property on their own.[/FONT]
[FONT=Verdana, sans-serif]Any tax due on this new purchase will be paid by the OP, there is no question of sharing the tax bill with anyone else.[/FONT]
[FONT=Verdana, sans-serif]It seems the OP might have to pay an additional 3% tax. The OP is arguing that because they only own 50% of their first property they should only pay 50% of this extra tax ie 1.5% rather than 3%.[/FONT]
[FONT=Verdana, sans-serif]Nice try but that's not going to happen.[/FONT]