Stam duty tax relief

lakecide

**Can anyone help with this**
I am a first time buyer and I am buying a property in my name that is below the stamp duty threshold. My wife has a property in her name but she is not buying with me. A solicitor said I am not exempted from the stamp duty tax that I will have to pay some money about 0.75% of the property I am buying. Another solicitor said I wont be paying any money. Can anyone help? 

[Deleted User]

lakecide said:

**Can anyone help with this**
I am a first time buyer and I am buying a property in my name that is below the stamp duty threshold. My wife has a property in her name but she is not buying with me. A solicitor said I am not exempted from the stamp duty tax that I will have to pay some money about 0.75% of the property I am buying. Another solicitor said I wont be paying any money. Can anyone help? 

It sounds to me as if the higher rate of SDLT will be due on the purchase because your wife already owns another property which I presume she is not selling.  IS your wife's property worth more than 40k?

lakecide

Yes, it is worth more than 40k

[Deleted User]

lakecide said:

Yes, it is worth more than 40k

Then yes, not only are you not eligible for the FTB SDLT relief but you will have to pay the higher rate of SDLT for the purchase of additional residential property, even if you are buying just in your name.  As a married couple you currently own one property between you and at the end of the transaction you will own two.

"Higher rates for additional dwellings Where a transaction is liable to the higher rates for additional dwellings in schedule 4ZA FA 2003, relief cannot be claimed."

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

oldbikebloke

and to back up the above comments that higher rate SDLT applies to the whole transaction:

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].

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

davidmcn

lakecide said:

A solicitor said I am not exempted from the stamp duty tax that I will have to pay some money about 0.75% of the property I am buying. Another solicitor said I wont be paying any money.

So, 100% wrong answers from the solicitors!