Transfer of Equity and HIgher Rate Stamp Duty

WileyOldFox

My Sister is currently in the process of a Transfer of Equity from her partner for the house they shared for 20+ years. During that time my Sister and I inherited a property which we have renovated and now Rent out. When I moved house in 2017 my Solicitor tried to get me to pay the increased Stamp Duty but I highlighted that this was a change in my Main Residence and so the increased Stamp Duty was not payable which they agreed with. I believed the same would apply to my Sister as the ToE relates to her Main Residence but her Solicitor is adamant that she needs to pay the increased figure as she is not Selling and Buying a new Main Residence.

Though it's irrelevant with Higher Rate Stamp Duty the Consideration value is £153k

Hoping someone on here may have been through a similar process or may be able to offer some insight as Google and the Government web site are both coming up short on equivalent scenarios

SDLT_Geek

There might be a different rule which will save the sister from the 3% surcharge to SDLT in this case.
There is a rule that if someone has lived in a property as their only or main residence throughout the whole of the previous three years, and already had at least a 25% share, then acquiring a further share is free of the 3% surcharge.
Are those the circumstances here? 

WileyOldFox

Yes they have both lived there since 2007 (at the latest) and owned it Jointly so yes that's correct here. Is this documented somewhere as I imagine her Solicitor will want some guidance before being satisfied to submit SDLT forms.
Thanks for your help and any information you can give us

SDLT_Geek

This should help: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09814

WileyOldFox

That's excellent. Thanks so much for your help
I've passed on the details to my Sister and she is over the moon as you would expect