Stamp duty query

Moe_The_Bartender

My wife and I are looking for a new home having recently returned to the UK from living abroad. We will have an extra 2% stamp duty to pay as we are technically non-resident but will be able to reclaim this once we establish residence.

We had completely forgotten that my mother in law transferred ownership of her home to my wife and her two brothers a few years ago and will continue to live there until her death. My wife therefore owns one third of this property. Does this mean that we would have to pay the higher rate of stamp duty applicable to purchasers of a second property?

If so, a way round this might be for me to buy a property solely in my own name as I have no interest in any other property.

K_S

@Moe_The_Bartender

- Yes, the 3% surcharge will be due for a joint purchase.

- Even if you were to make the purchase in your sole name, the transaction may still qualify for the 3% surcharge as married couples are treated as one unit for this purpose. An individual buying a property may be liable for the higher rates if their spouse has an existing residential property.

grumiofoundation

Can your wife sell/dispose of the portion of the property she owns? 

Otherwise you will be paying +3% SDLT. 

Moe_The_Bartender

grumiofoundation said:

Can your wife sell/dispose of the portion of the property she owns? 

Otherwise you will be paying +3% SDLT. 

We'd need to talk to her brothers about that. Neither of them has the means to buy out her interest at present but perhaps it would be possible to sell her interest in the property now with payment to be made when they inherit it?