Buy To Let property in Wife's name

aj9648

Hi

Between my wife and myself we have about £50K worth of savings that we are looking to invest......kids are 4 & 8 and thought of property to invest in for their future more than anything else.

I already have a house (mortgage free), a flat in the City that we bought in 2000 that we have rented out for the last 10 years (also all paid for). No debts. We pay into SIPPS and ISAs.

All of the property is in my name and so were the mortgages.
If we were to buy another place, could the Mrs have it in her name and be a first time buyer? I guess then avoiding stamp duty etc.

Any advise?

bengalknights

No as you are only a FTB if you have never owned a property before, property purchases include those of spouses.

SDLT_Geek

aj9648 wrote: »

Hi

Between my wife and myself we have about £50K worth of savings that we are looking to invest......kids are 4 & 8 and thought of property to invest in for their future more than anything else.

I already have a house (mortgage free), a flat in the City that we bought in 2000 that we have rented out for the last 10 years (also all paid for). No debts. We pay into SIPPS and ISAs.

All of the property is in my name and so were the mortgages.
If we were to buy another place, could the Mrs have it in her name and be a first time buyer? I guess then avoiding stamp duty etc.

Any advise?

Higher rates of SDLT would be due because of the properties which you own.

aj9648

Ok thanks.

Newnoel

Also worth considering the income tax implications.


We are in a very similar situation, so have recently bought a BTL entirely in my wife's name as she is a standard rate taxpayer, while I pay 45%.


Have you considered VCTs? Worth considering if you have maxed your SIPP, or are likely to do so.


I have been drip feeding spare cash into this one:
https://octopusinvestments.com/investor/our-products/venture-capital-trusts/octopus-titan-vct/

the_flying_pig

bengalknights wrote: »

No as you are only a FTB if you have never owned a property before, property purchases include those of spouses.

i suppose that you [and OP] are being a little bit loose with your language, in effect conflating two things, namely:

(1) being an FTB - hence potentially eligible for say HTB etc; and
(2) not being a multiple property owner - hence not paying the 'second home'/landlord rate of stamp duty?

to qualify for (2) it doesn't matter whether you've owned a hundred properties in the past, what matters is whether you own any others at the point at which you buy.

but as it happens i'm fairly sure that having a spouse or formal civil partner [tho not a live in lover or casual squeeze - maybe divorce is the answer?] who owns property does indeed mean that you would be classed as a multiple property owner, e.g. see https://www.dailymail.co.uk/property/article-4588916/Can-avoid-buy-let-stamp-duty-wife-buys.html

phillw

Your wife will be liable for stamp duty as she doesn't intend to occupy it.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/759714/Stamp_Duty_Land_Tax_relief_for_first_time_buyers_-_guidance_note.pdf

the purchaser or, if there is more than one, each of them, is a first time buyer, who
intends to occupy the dwelling as their only or main residence,


And she will be liable for higher stamp duty too.

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09820

Purchasers with a spouse or civil partner
Where an individual with a spouse or civil partner purchases an interest in a dwelling and their spouse or civil partner is not a joint purchaser, the spouse or civil partner will be treated as a joint purchaser in respect of the transaction [Para 9].

This means that where a purchaser is married or in a civil partnership, if Conditions A to D are met by either the purchaser or their spouse or civil partner, the transaction will be a higher rates transaction.

Newnoel wrote: »

We are in a very similar situation, so have recently bought a BTL entirely in my wife's name as she is a standard rate taxpayer, while I pay 45%.

You don't have to put the property in your wifes name to achieve that https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17

You'd need a trust deed as evidence.