Scottish additional stamp duty question

woolythoughts

Hi

I bought a house in Scotland for £296,000.  At the Time I paid normal stamp duty on it of £4,400.  My mortgage is £250,000.

My now husband is going to remortgage his own property as a buy to let to pay off my mortgage so we own the property in both our names.    The house will be held equally between us.

Is it just the additional 6% ADS that he's going to be liable for?  Surely he doesn't have to pay £4,400 as well?

Thanks in advance.

_Penny_Dreadful

woolythoughts said:

Hi

I bought a house in Scotland for £296,000.  At the Time I paid normal stamp duty on it of £4,400.  My mortgage is £250,000.

My now husband is going to remortgage his own property as a buy to let to pay off my mortgage so we own the property in both our names.    The house will be held equally between us.

Is it just the additional 6% ADS that he's going to be liable for?  Surely he doesn't have to pay £4,400 as well?

Thanks in advance.

Which house do you both live in?

woolythoughts

We will both be in the house in Scotland.

anselld

There is an exemption for additional SDLT (in England at least) for transfer between spouses so provided half of your mortgage is less than £145k there would be nothing to pay.  Perhaps @SDLT_Geek could confirm.

_Penny_Dreadful

woolythoughts said:

We will both be in the house in Scotland.

As a married couple you can only have one main home for tax purposes so which home is it in your case? 

_Penny_Dreadful

anselld said:

There is an exemption for additional SDLT (in England at least) for transfer between spouses so provided half of your mortgage is less than £145k there would be nothing to pay.  Perhaps @SDLT_Geek could confirm.

The OP has stated they’re in Scotland where LBTT applies. Rules around SDLT in England do not apply. 

anselld

_Penny_Dreadful said:

anselld said:

There is an exemption for additional SDLT (in England at least) for transfer between spouses so provided half of your mortgage is less than £145k there would be nothing to pay.  Perhaps @SDLT_Geek could confirm.

The OP has stated they’re in Scotland where LBTT applies. Rules around SDLT in England do not apply. 

I realise that.  The rates are different but most of the rules are the same.  Admittedly I don't know about the specific rule on spouse transfer exemption.

woolythoughts

_Penny_Dreadful said:

woolythoughts said:

We will both be in the house in Scotland.

As a married couple you can only have one main home for tax purposes so which home is it in your case? 

The one in Scotland

user1977

woolythoughts said:

_Penny_Dreadful said:

woolythoughts said:

We will both be in the house in Scotland.

As a married couple you can only have one main home for tax purposes so which home is it in your case? 

The one in Scotland

You've told us about two properties, but only told us where one is - shall we assume your husband's property is in not-Scotland?

_Penny_Dreadful

anselld said:

_Penny_Dreadful said:

anselld said:

There is an exemption for additional SDLT (in England at least) for transfer between spouses so provided half of your mortgage is less than £145k there would be nothing to pay.  Perhaps @SDLT_Geek could confirm.

The OP has stated they’re in Scotland where LBTT applies. Rules around SDLT in England do not apply. 

I realise that.  The rates are different but most of the rules are the same.  Admittedly I don't know about the specific rule on spouse transfer exemption.

There are some quite significant differences between the Scots law governing LBTT and the English law governing SDLT.  It is dangerous to take the rules for one and try to apply them to the other.

woolythoughts

Sorry, Yes.  My husbands property is in England our new home will be in Scotland at mine.