Selling my share in a jointly owned home

Justi

Hi everyone
My partner and I are separating and he is buying out my 50% share of our home, which we own as tenants in common. I believe that he will need to pay stamp duty when he buys my share and becomes the 100% owner - that seems clear and understandable. But someone has also said to me that when I buy a new home for myself I may be liable for the 3% second home stamp duty surcharge. I don't understand this as I will at that stage have already sold my primary home (my 50% share in our joint property). Can anyone enlighten me as to whether/why this surcharge would apply - it seems completely wrong! And I can't see anything on the government website that suggests I would be liable for the extra 3%. But maybe I am missing something. Thank you!

kingstreet

It shouldn't. You are transferring equity for your only property and purchasing a new residence.

Justi

Thank you. Does it matter that I also own a property that I rent out? And that I will be renting a place for a short period myself before buying a new home? I will be less than one year in rented accommodation.

chanz4

Justi said:

Thank you. Does it matter that I also own a property that I rent out? And that I will be renting a place for a short period myself before buying a new home? I will be less than one year in rented accommodation.

if you own the rental, then buy another then yes you will be liable for 3%

Flugelhorn

chanz4 said:

Justi said:

Thank you. Does it matter that I also own a property that I rent out? And that I will be renting a place for a short period myself before buying a new home? I will be less than one year in rented accommodation.

if you own the rental, then buy another then yes you will be liable for 3%

I thought that if you were replacing  a main residence by another main residence then you weren't liable for the 3% - in this case you start with 2 properties and end up with 2 properties

Justi

Flugelhorn said:

chanz4 said:

Justi said:

Thank you. Does it matter that I also own a property that I rent out? And that I will be renting a place for a short period myself before buying a new home? I will be less than one year in rented accommodation.

if you own the rental, then buy another then yes you will be liable for 3%

I thought that if you were replacing  a main residence by another main residence then you weren't liable for the 3% - in this case you start with 2 properties and end up with 2 properties

Yes, indeed. I will not be buying another rental. I will be renting a property while I look for a place to buy as my new main residence. I will go from owning a home and a rental, to temporarily living in rented accommodation and owning the rental, to eventually owning a new main home and the original rental.

SDLT_Geek

Justi said:

Thank you. Does it matter that I also own a property that I rent out? And that I will be renting a place for a short period myself before buying a new home? I will be less than one year in rented accommodation.

So long as you have been living in the jointly owned home as your only or main residence, and completely dispose of all of your interest in it, then I would expect you to benefit from the rules about replacing your only or main residence.  The conditions to meet are explained well in the guidance here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800

Justi

SDLT_Geek said:

Justi said:

Thank you. Does it matter that I also own a property that I rent out? And that I will be renting a place for a short period myself before buying a new home? I will be less than one year in rented accommodation.

So long as you have been living in the jointly owned home as your only or main residence, and completely dispose of all of your interest in it, then I would expect you to benefit from the rules about replacing your only or main residence.  The conditions to meet are explained well in the guidance here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800

Thank you, SDLT Geek. That seems very clear. The link clarifies a lot. Thank you!