Stamp Duty Holiday - Additional Property

colinbest2

Basically me and my partner and breaking up and we have a joint mortgage together. I'm staying on the joint mortgage but have luckily been offered money from another lender to get a mortgage for a second property for me to live in. The question I have is will I have to pay stamp duty for this whilst we're in the stamp duty holiday? The calculator on the government website says I do if the property Iis not replacing my main residence. However if the property is replacing my main residence then I am eligable for the stamp duty holiday.

What exactly is this main residence criteria? I'm struggling to find much on it.

TBG01

You're replacing the property you currently own.

SDLT_Geek

I assume from what you say that you are buying in England, as there is a tapered part of the holiday for completions by 30 September 2021.

You will find guidance in the part of HMRC's manual indexed here. https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09730  It sounds as if you will not count as "replacing" your main residence because the old one is not sold / disposed of.  So I would expect the extra 3% SDLT to apply to your purchase.

There is a rule which can help in your kind of situation if you and your partner are married or civil partners and there is a "property adjustment order" in place. https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09797 

SDLT_Geek

TBG01 said:

You're replacing the property you currently own.

Not within the meaning of the SDLT rules!

colinbest2

So looking at this article: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09812

Firstly, what is considered as "disposing of". I meet the criteria of owning my current property and also residing here. I'm assuming because my name will remain on the deeds and mortgage this will be an issue?

Scrolling down there are a list of points to consider when establishing which residence would be my main residence and I would pass all those points as everything to me would be registered to my new house.

user1977

colinbest2 said:

So looking at this article: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09812

Firstly, what is considered as "disposing of".

"No longer being the owner". Whether by selling in the usual manner or e.g. transferring title to your ex. 

K_S

colinbest2 said:

So looking at this article: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09812

Firstly, what is considered as "disposing of". I meet the criteria of owning my current property and also residing here. I'm assuming because my name will remain on the deeds and mortgage this will be an issue?

Scrolling down there are a list of points to consider when establishing which residence would be my main residence and I would pass all those points as everything to me would be registered to my new house.

@colinbest2 I'm not an authority on this but it looks like your case might fail one/both of these tests -

colinbest2

Aye, looks as though that'll be the criteria catching me out. Thank for your helps everyone. Better save some more money to go towards lining the governments back pocket.

AdrianC

colinbest2 said:

Firstly, what is considered as "disposing of". I meet the criteria of owning my current property and also residing here. I'm assuming because my name will remain on the deeds and mortgage this will be an issue?

"Disposing of" means you will no longer own it.

Being on the deeds and mortgage means you still own it.

grumiofoundation

If you dispose of your current property within 3 years you can claim back the +3% SDLT.