Stamp Duty Confusion

Stampduty

Just wondering if anyone can help.

I owned a home from 2007 - 2018 - now sold. The property was always solely in my name (bought before I met my husband).
We now are moving to a bigger house and wanted to do it in husbands name only (as he’s technically a first time buyer) and therefore pay £0 stamp duty (house under £300k).

We thought that this was perfectly fine but someone said it’s not allowed. Does anyone know if this is legal or not?

G_M

See here for rates "if you've bought a property before":

https://www.gov.uk/stamp-duty-land-tax/residential-property-rates


As a married couple you are consdered to be a single unit. You have bought before, so....


See calculator here:
https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

Stampduty

So we’re at a disadvantage because we’re married? That doesn’t seem fair!

G_M

a) who said life was fair?


b) why is it not fair - you have committed to life together so you are treated for some purposes by the authorities and/or certain corporations as a married couple

SDLT_Geek

There are all sorts of SDLT complications around a married couple where one only buys a property! Although as a shorthand, it is sometimes said that a married couple are treated as a unit, this is not how the rules work.

One rule, for the higher rates of SDLT, is that if a person is living with a spouse and buys a property alone, then the purchase has to be judged as if the spouse is buying as well. If the spouse buying the new property would be liable to the higher rates, then the higher rates apply to the purchase.

Here, if your spouse alone buys, the higher rates would not be due on account of your circumstances (you have already sold).

The first time buyers' relief rules are different. If he alone buys then, so long as the higher rates are not due, your circumstances do not count.

This assumes that you are not a "purchaser". It is not enough for to escape being a purchaser that the new place is bought in your spouse's name. It is also important that you have no underlying share in the new property. That might not fit your circumstances where it sounds as if it is OP with some cash from the sale. Is the spouse able to afford to buy alone?

Stampduty

Because if we were unmarried but in a long term committed relationship we could save £4000+ - the guidance regarding being treated as one is under the higher rates of TAX rules (where presumably you wouldn’t be living in both properties as your main residencies) - think I’ll seek further legal advice on this and let you know the outcome. Thanks for your input.

Stampduty

We are using a guarantor mortgage - the bank have not raised any concerns with this - it was just a friend who suggested it mightn’t be allowed! I don’t want to do anything which is illegal.

SDLT_Geek

There is a detailed write up on the first time buyer rules available on the pdf linked from here: https://www.blakemorgan.co.uk/news-events/blog/sdlt-first-time-buyers-relief/ You should look at section 6.1 and get to know Soul and Nesa!! That covers a similar situation to yours.

SDLT_Geek

Stampduty wrote: »

We are using a guarantor mortgage - the bank have not raised any concerns with this - it was just a friend who suggested it mightn’t be allowed! I don’t want to do anything which is illegal.

It is difficult to get a guarantor mortgage now. Are you getting a joint borrower, sole proprietor mortgage?

What matters most for SDLT is who has the underlying ownership of the property. If you are both putting money in, then you would normally both have shares in the property, even if it is registered in the name of one of you alone.

G_M

As usual, much more detailed answer from SDLT Geek than mine.


:T

Stampduty

Thanks, both of you, for your help ��