Stamp Duty: First time Buyer Marries Homeowner + new property

unforeseen

From https://www.gov.uk/government/consultations/consultation-on-higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties/higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties

The government will treat married couples and civil partners living together as one unit. This is consistent with other areas of the tax system including Capital Gains Tax private residence relief where married couples are entitled to relief on one residence between them.

This means that:

married couples and civil partners may own one main residence between them at any one time for the purposes of the higher rates
property owned by either partner (and any minor children) will be relevant when determining if an additional property is being purchased or not. Therefore, an individual buying a property may be liable for the higher rates if his or her spouse or civil partner has an existing residential property. If the spouse or civil partner then sells that residential property they may be able to claim a refund
Married couples and civil partners are treated as living together, and therefore as one unit, unless they are separated:

under a court order; or
by a formal Deed of Separation executed under seal.

Beeper

unforeseen wrote: »

from https://www.gov.uk/government/consultations/consultation-on-higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties/higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties

thank you

SDLT_Geek

Beeper wrote: »

But can’t find anything that says a married couple would be assessed a single unit for SDLT. Where would this be? Thanks

Nowhere in the SDLT legislation does it say that a married couple is treated as a single unit. What sinks you though is a combination of things:

1. First time buyers' relief is not available if the higher rates of SDLT apply (the 3% surcharge).

2. For the purpose of the higher rates a purchase has to be judged as if they buyer's spouse was buying the property. If for the spouse buying the higher rates would apply, then the higher rates apply to the purchase.

As discussed before, this rule does not apply where spouses are separated in circumstances likely to prove permanent.