Husband and wife SDLT help needed please

motorman99

Hi all
thanks in advance for all help 
I am buying 2 buy to let houses from my wife at a slightly discounted price of £300k and £290k respectively. 

I own our main residence outright 

If it makes any difference the true value of each is £370k and £340k respectively. 

The conveyancers recommended by the mortgage broker insist that the SDLT payable should include the 3% BTL surcharge 
however i have spoken to HMRC twice and they have said that from 22/11/17, there is a concession that because it’s a transaction between spouses the SDLT payable should be at the standard rate for the consideration paid. 

I’ve told the conveyancers this but they won’t have it, insisting that it’s at the surcharge rate. 

Well, either HMRC are wrong or they are.

but which?

SDLT_Geek

motorman99 said:

Hi all
thanks in advance for all help 
I am buying 2 buy to let houses from my wife at a slightly discounted price of £300k and £290k respectively. 

I own our main residence outright 

If it makes any difference the true value of each is £370k and £340k respectively. 

The conveyancers recommended by the mortgage broker insist that the SDLT payable should include the 3% BTL surcharge 
however i have spoken to HMRC twice and they have said that from 22/11/17, there is a concession that because it’s a transaction between spouses the SDLT payable should be at the standard rate for the consideration paid. 

I’ve told the conveyancers this but they won’t have it, insisting that it’s at the surcharge rate. 

Well, either HMRC are wrong or they are.

but which?

HMRC are right, this time.  See the lower part of the guidance here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09820 

Have your conveyancers mentioned multiple dwellings relief yet?

Edit: As noted below, the first point is dependent on OP and his wife counting as "living together" for tax purposes. 

Snookie12cat

Are you separating from your wife?

motorman99

Ha. 

I was but we’ve done a deal where I buy these properties from her. 

So no not at this time 

motorman99

No multiple dwelling relief mentioned no.

motorman99

dear sdlt geek

yes, just read that. The conveyancers said it’s a sale rather than a transfer? But even in a transfer money can change hands? Is there a difference ?

SDLT_Geek

motorman99 said:

dear sdlt geek

yes, just read that. The conveyancers said it’s a sale rather than a transfer? But even in a transfer money can change hands? Is there a difference ?

So to be clear, you and your wife are still together?  The rule about the 3% extra not applying depends on that.

It sounds as if what is happening is both a sale and a transfer.  Multiple dwellings relief might well help here.

motorman99

yes still together 
I think if we were divorcing or officially separated there would be no sdlt ?
but we are together 

SDLT_Geek

motorman99 said:

yes still together 
I think if we were divorcing or officially separated there would be no sdlt ?
but we are together 

Some transactions made between divorcing couples can be exempt from SDLT if made pursuant to a court order, or the right kind of agreement between the parties, but this is not relevant here, so no need to go into the details.

motorman99

So is it the case then that the standard rates of SDLT apply? 

I think it probably is the case and that the boiler room conveyancers are afraid of a non standard transaction. 

SDLT_Geek

motorman99 said:

So is it the case then that the standard rates of SDLT apply? 

I think it probably is the case and that the boiler room conveyancers are afraid of a non standard transaction. 

Yes, for you buying properties from your wife when you count as “living together”.