Stamp duty

Papple77777777

Hi.
wonder if anyone can help please ? 

looking at buying a small leasehold flat to rent out - initially  renting it to my step daughter. I live with my partner in her own home which she is the sole mortgage holder. I’ve previously been on a mortgage but am no longer on any mortgage.There will not be a mortgage on the flat if I do go ahead with it.  The purchase is over 40k. 

I’ve read various different information  regarding stamp duty and I’m not sure stamp duty will apply to this potential purchase other than it being treated as a buy to let but not sure if it being for a family member makes stamp duty none payable ? 

Can anyone clear this up for me please? A

moneysavinghero

Are you marred or in a civil partnership? If you are then you would need to pay Standard Stamp Rate + Second Home Rate. Otherwise it would just be the standard rate. (unless you own another property - you say you used to be on a mortgage, what happened to that property?)

Papple77777777

Thanks for the reply. 

We live together - we’re not married or in civil partnership. 

I don’t own any another property. Had my own place till a few years ago and sold it. 

SDLT_Geek

Are you buying in England?

Papple77777777

Hi. Yes we are buying in England 

saajan_12

Papple77777777 said:

Hi.
wonder if anyone can help please ? 

looking at buying a small leasehold flat to rent out - initially  renting it to my step daughter. I live with my partner - married / civil partnership? in her own home which she is the sole mortgage holder. -and sole owner? I’ve previously been on a mortgage but am no longer on any mortgage. - and no properties owned? There will not be a mortgage on the flat if I do go ahead with it.  The purchase is over 40k. - over 125k? or 250k? or 500k? (for the various bands)

I’ve read various different information  regarding stamp duty and I’m not sure stamp duty will apply to this potential purchase other than it being treated as a buy to let but not sure if it being for a family member makes stamp duty none payable ? - there's no separate segregation for a buy to let SDLT. What matters is whether its an additional property you own. 

Can anyone clear this up for me please? A

Forget about mortgages, that only affects acceptance by mortgages and/or various gvt schemes. 
The tax is based on ownership - do you, or anyone you're married to own any other properties? If yes, then there could be additional 3% SDLT, unless you're in one of the exceptions. 

Also whats the value of the new property, and timescale of when you expect to complete? That would affect the standard rate SDLT  if any. 

Papple77777777

Thanks for the reply and pointers. 

Hope this helps clarify my question - 

Im not married / civil partnered to my lady
she’s  the sole owner of the house we live in

historically married - separated for some years - she doesn’t own a house or is on a mortgage. 


I don’t  own any properties. 
Place I’m looking at is sub 125k and I can complete ASAP. 

stig

SDLT generally doesn’t care who will be living in the property, it’s a transaction tax payable by a purchaser of property when it changes hands for consideration.

if the property costs over £40k, you’ll have to submit a return. However, unless it costs over £125k in ‘normal’  times, or over £500k between now and the end of June, or £250k between July and September, there won’t be any tax to pay if you don’t own other residential property or are married or in a civil partnership with someone who owns other residential property.

I’d be really interested to know where you’ve seen that the tax  is different if a family member lives there? The only thing that will make a difference to you is if buying the property makes  you, or a spouse,  own more than one property.

Stig.

Papple77777777

Thanks for the info
Just to clarify - I won’t have to pay SD even though it’s  going to be let out  ( as I don’t own another property or am married / civil partnered to someone else)? 
ref the family member bit - with hindsight I think I’ve got it mixed up with something  I read about gifting property.  

AnotherJoe

Whether it's being let out is literally irrelevant. On the other facts you've stated there is no SDLT to pay. 

Papple77777777

Thanks for the info