SDLT advice /opinions

[Deleted User]

The page you've posted above is a very high level explanation of the FTB relief.  This guidance note has more detail.

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 part that specifically applies to your situation is, "Relief is not available if the purchase is of an additional dwelling, which is liable to the higher rates of SDLT under schedule 4ZA FA 2003."  You are liable to the higher rates of SDLT under schedule 4ZA FA 2003 because your husband already owns a property and will continue to own it after you complete the purchase of this new property.

allconnected

Hi, it’s a little more complicated than that.

if your husband had previously owned a property but didn’t now, you could still benefit from first time buyers relief If you bought the property entirely in your own name. FTB doesn’t lump spouses together, only actual buyers.

Your problem is that, as your husband already owns a residential property, you will be liable to the higher rate of SDLT on additional dwellings - this test does consider the position of both the husband and wife in any house purchase and if either of them already own a residential property, the higher rate is due. I assume this is to stop married couples getting round the higher rate of SDLT by owning one property each instead of two properties jointly. Properties on which the higher rate is due aren’t eligible for first time buyers relief. The Gov.UK guidance is very superficial and doesn’t go into the interaction of different rules, as you have found.

so instead of escaping SDLT altogether, you may  need to pay the rate including the 3% surcharge because your  husbands property makes your purchase a higher rates transaction.

in any case, you wouldn’t qualify for FTB relief unless you intended to live in the house you are buying  - buying a house to let out or as a holiday home wouldn’t qualify.

allconnected

mishkab12

allconnected said:

Hi, it’s a little more complicated than that.

if your husband had previously owned a property but didn’t now, you could still benefit from first time buyers relief If you bought the property entirely in your own name. FTB doesn’t lump spouses together, only actual buyers.

Your problem is that, as your husband already owns a residential property, you will be liable to the higher rate of SDLT on additional dwellings - this test does consider the position of both the husband and wife in any house purchase and if either of them already own a residential property, the higher rate is due. I assume this is to stop married couples getting round the higher rate of SDLT by owning one property each instead of two properties jointly. Properties on which the higher rate is due aren’t eligible for first time buyers relief. The Gov.UK guidance is very superficial and doesn’t go into the interaction of different rules, as you have found.

so instead of escaping SDLT altogether, you may  need to pay the rate including the 3% surcharge because your  husbands property makes your purchase a higher rates transaction.

in any case, you wouldn’t qualify for FTB relief unless you intended to live in the house you are buying  - buying a house to let out or as a holiday home wouldn’t qualify.

allconnected

Thanks.
I intend to make the new house as our (mine and husband's) only residence.
The first one, owned by my husband, to be put on rental market. He will the landlord of that property.

I reckon this dont change anything with regards to sdlt higher rate tax, the exception being, he sells his house within 3 years of me completing the purchase of new property. I can then reclaim the difference between higher and actual sdlt (in my case £7500 minus £1500 = £6000 back) 

I read all the guidance provided by you good people and therefore came to above conclusion. 
Considering all benefits of BTL landlords have been eliminated now, govt should look into this guidance. We just want a house in our name each to plan for retirement. 
Stopping people who can afford one additional property will not make those unable to afford any better off. But hey ho 

davidmcn

mishkab12 said:

allconnected said:

Hi, it’s a little more complicated than that.

if your husband had previously owned a property but didn’t now, you could still benefit from first time buyers relief If you bought the property entirely in your own name. FTB doesn’t lump spouses together, only actual buyers.

Your problem is that, as your husband already owns a residential property, you will be liable to the higher rate of SDLT on additional dwellings - this test does consider the position of both the husband and wife in any house purchase and if either of them already own a residential property, the higher rate is due. I assume this is to stop married couples getting round the higher rate of SDLT by owning one property each instead of two properties jointly. Properties on which the higher rate is due aren’t eligible for first time buyers relief. The Gov.UK guidance is very superficial and doesn’t go into the interaction of different rules, as you have found.

so instead of escaping SDLT altogether, you may  need to pay the rate including the 3% surcharge because your  husbands property makes your purchase a higher rates transaction.

in any case, you wouldn’t qualify for FTB relief unless you intended to live in the house you are buying  - buying a house to let out or as a holiday home wouldn’t qualify.

allconnected

We just want a house in our name each to plan for retirement. 
Stopping people who can afford one additional property will not make those unable to afford any better off.

You're not being "stopped". You just need to pay your tax.