Holding a charge over ex’s house impact on stamp duty?

brightonbird

Hi, my ex and I are separating and I will be holding a charge over his house for a few years until he sells it, for around £30k. My solicitor has said I need to talk to a tax advisor (more £££!) incase it impacts how much stamp duty I need to pay. I can’t seem to find answer on Google and it seems very unlikely that seeing as I won’t be named on the mortgage or the deeds, that this would count as a second home?

Would really rather not have to pay the tax advisor if I can avoid it! 

user1977

A legal charge in security of a debt is not relevant for SDLT purposes. Not sure why your solicitor thinks that beyond their knowledge.

_Penny_Dreadful

brightonbird said:

Hi, my ex and I are separating and I will be holding a charge over his house for a few years until he sells it, for around £30k. My solicitor has said I need to talk to a tax advisor (more £££!) incase it impacts how much stamp duty I need to pay. I can’t seem to find answer on Google and it seems very unlikely that seeing as I won’t be named on the mortgage or the deeds, that this would count as a second home?

Would really rather not have to pay the tax advisor if I can avoid it! 

If you’re talking about a legal charge securing £30k of debt then it doesn’t impact your SDLT.  Even if you were still a beneficial owner your SDLT shouldn’t be impacted because your share would be worth less than £40k.