Second property deeds

Sarbear11

I bought a property with my mum 13 years ago and she has recently paid the mortgage off.
I am due to move house but am unsure as to whether I will have to pay the higher rate of stamp duty if I am moving my main residence only.
If I am, what's the easiest way of being removed from the deeds so that I just pay the standard rate of stamp duty

allconnected

Surely the value of the property you’ll be giving away to your mother will be much, much higher than the stamp duty you’ll save from giving it away?

Allconnected

Sarbear11

Probably the same actually!! I don't have any interest in the property I share with her. She's going to rent it out but I don't want any financial gain from it 

SDLT_Geek

Sarbear11 said:

I bought a property with my mum 13 years ago and she has recently paid the mortgage off.
I am due to move house but am unsure as to whether I will have to pay the higher rate of stamp duty if I am moving my main residence only.
If I am, what's the easiest way of being removed from the deeds so that I just pay the standard rate of stamp duty

Your post does not say where you have been living.  Is it in the jointly owned house?  Or have you been in rented?  Or does "moving house" involve you selling a property you have been living in? It makes a big difference to SDLT.

Sarbear11

I've been in my own owned residence. I have never lived in the jointly owned residence. 

Sarbear11

And yes, moving house involves me selling my current main residence 

SDLT_Geek

Sarbear11 said:

And yes, moving house involves me selling my current main residence 

So you will probably not have to pay the extra 3% anyway, based on the "replacement exception".  It is explained here: https://www.zoopla.co.uk/discover/buying/stamp-duty-land-tax-3-surcharge-replacement-of-an-only-or-main-residence-and-the-all-important-three-year-rule/

allconnected

If  you don’t  have any financial interest in the house you own with your mother, why are you on the deeds? You say “I bought a property with my mum” - I presume you were on the mortgage too? 

If so then I think your best bet is to explore what SDLT_Geek says about relying on the replacement exemption for selling one main residence and buying another, which would mean you can ignore this property altogether. Signing over your share of a property you’ve never lived in to your mum may trigger a charge to Capital Cains Tax, as the transfer will be treated as if it were done at market value because you are connected persons and you can’t claim the principal main residence exemption as you’ve never lived there.

AllConnected.

greatcrested

You are selling your current main residence.

Yoy are buying a new replacement main residence.

You do not pay the additional 3%.

The 2nd property you jointly own with your mothr is irrelevant for SDLT.

If/when you sell the jointly owned property there may be Capital Gains Tax to pay as t has not been you main residence - but that is separate.

[Deleted User]

Sarbear11 said:

Probably the same actually!! I don't have any interest in the property I share with her. She's going to rent it out but I don't want any financial gain from it 

How is the property with your mother owned, tenants in common or joint tenants? Is there a Deed of Trust stating that you have no beneficial interest in the property? 

Not that this matters for SDLT right now as it appears the higher rate won’t apply in your case as you are selling your main residence in order to purchase another main residence. It might matter in the future though if the property your mother lives in is sold. 

Keep_pedalling

greatcrested said:

You are selling your current main residence.

Yoy are buying a new replacement main residence.

You do not pay the additional 3%.

The 2nd property you jointly own with your mothr is irrelevant for SDLT.

If/when you sell the jointly owned property there may be Capital Gains Tax to pay as t has not been you main residence - but that is separate.

There may also be CGT to pay if the OP gifted their share to their mother.