Stamp Duty Query

GavinSweeney

Hi,

Can anyone shed some light on my query?

I already own own 1/5th of a house property valued at 250K

I am about to purchase the remainder of the house with my girlfriend at shared value of 100K each through a mortgage.

If i'm a first time buyer and part-owner of the property already and my girlfriend is a an existing home-owner - how do we calculate the Stamp Duty?

I've been through the HMRC Stamp Duty calculator and it maintains that the SD is zero!

As a first time buyer the calculator allows you to purchase a property below 250K without paying any SD before 30 September 2021

However if you have a second property (like my girlfriend) you are due to pay 3% of the value of the property (250K)

Even if I indicated on their 'online questionnaire' that this is a second property - on account of girlfriend's status...It stills calculates as 'zero' Stamp Duty.

Is this correct?

Gavin

Slithery

GavinSweeney said:

If i'm a first time buyer and part-owner of the property already and my girlfriend is a an existing home-owner - how do we calculate the Stamp Duty?

But your not a FTB, you already own a share worth more than £40k in a property.

'First time buyer' is a bit of a misnomer, a more accurate term for SDLT purposes would be 'first time owner'.

SDLT_Geek

GavinSweeney said:

Hi,

Can anyone shed some light on my query?

I already own own 1/5th of a house property valued at 250K

I am about to purchase the remainder of the house with my girlfriend at shared value of 100K each through a mortgage.

If i'm a first time buyer and part-owner of the property already and my girlfriend is a an existing home-owner - how do we calculate the Stamp Duty?

I've been through the HMRC Stamp Duty calculator and it maintains that the SD is zero!

As a first time buyer the calculator allows you to purchase a property below 250K without paying any SD before 30 September 2021

However if you have a second property (like my girlfriend) you are due to pay 3% of the value of the property (250K)

Even if I indicated on their 'online questionnaire' that this is a second property - on account of girlfriend's status...It stills calculates as 'zero' Stamp Duty.

Is this correct?

Gavin

If your GF is keeping her existing property and buying into this one, then it sounds as if SDLT will be due at 3% on the £200,000 you jointly pay if it completes by 30 September, a bit more if after that date, when the holiday ends.

I wonder how you managed to get the online calculator to say zero.  Did you say that it is a replacement of a main residence?  That requires a sale or other disposal of a previous residence.

It would be useful to have some more context.  Do you live in it?  Who owns the other 4/5 share?  Is it mortgaged?  Will it become your GF's main residence?  Will she sell her existing home and if so when?