Stamp duty rates for couples?

kerrick

The % stamp duty payable on a residential property is higher if it's not your only property and higher again if you are an overseas resident.

If one spouse owns a property in their sole name, and the couple want a second property, can the spouse without a property buy the second property at the normal stamp duty rate, then transfer half share or the whole ownership to the other spouse afterwards, with no tax or stamp duty implications for the transfer?

If they then wanted a third property, how would stamp duty be calculated if for one spouse it was their second property, and the other it was also a second property and they were an overseas resident? If they buy together is the stamp duty calculated pro rata on each share? Could the UK resident spouse buy the property solely at the second property stamp duty rate, and then transfer half or all ownership to their overseas resident spouse, without any further tax or stamp duty payable?

DE_612183

I don't think it's about being your only property - it's about being your main residence.

If the second property is not your main residence - then you pay the higher rate.

I don't think there is any question of pro-rata.

movilogo

If the purchaser own any other property then pays higher rate of stamp duty.
If using cash, you can gift spouse part of ownership. But if mortgaged, then you need agreement from lender.

saajan_12

kerrick said:

The % stamp duty payable on a residential property is higher if it's not your only property and higher again if you are an overseas resident.

If one spouse owns a property in their sole name, and the couple want a second property, can the spouse without a property buy the second property at the normal stamp duty rate, - No, the 2nd property would be charged the extra 3% as a married couple is treated as a unit for sdlt purposes (this is assuming there's no corresponding sale within time bounds of the 2nd property purchase)
then transfer half share or the whole ownership to the other spouse afterwards, with no tax or stamp duty implications for the transfer? - Yes transfers between spouses is free from sdlt. 

If they then wanted a third property, how would stamp duty be calculated if for one spouse it was their second property, and the other it was also a second property and they were an overseas resident? If they buy together is the stamp duty calculated pro rata on each share? - with married couples, if one is UK resident then both are treated as such, so the whole transaction would be at the resident rate. 
Could the UK resident spouse buy the property solely at the second property stamp duty rate, and then transfer half or all ownership to their overseas resident spouse, without any further tax or stamp duty payable?- yes, but no benefit vs just buying in both names from the start. 

comments in line..

kerrick

saajan, thank you, that's very helpful.

So whether one buys on their own, or they buy jointly, they will both be considered to already have a 'first property' if either purchases another property. On the first or any subsequent properties, if one is non resident, and one UK resident, the resident stamp duty rate applies to the whole purchase price.

If couples want to proportion their share of ownership, for example so a spouse with no other income can get a share of rental income in line with the nil tax annual allowance, then the property share can be adjusted by transfer without any tax or stamp duty payable?