2nd Home stamp duty

gadger999

My sister in law has just split up with her partner and is splitting the proceeds of their home which will be about 300k each..
She obviously needs to buy a new house for her and her daughter but about 5 years ago was left a 25 % share in her mother's house from her father's will and this is now classed as a second home so she will get hit after the recent budget with an extra 5% stamp duty, is the best option to take the tax hit or remove her name from the 2nd house and transfer it back to mother or sister...all going to cost money but cant think of any other options
Thanks in advance 

eskbanker

Surely the Budget changes to stamp duty would only apply if she was to buy a second property from now onwards, so won't affect her purchase of a main residence while already owning a second property?

mebu60

As she is replacing her principal private residence there should not be any additional SDLT to pay over the standard rate. 

gadger999

mebu60 said:

As she is replacing her principal private residence there should not be any additional SDLT to pay over the standard rate. 

She's been told by her solicitor it does count as a 2nd property and is liable for the extra stamp duty 

eskbanker

gadger999 said:

mebu60 said:

As she is replacing her principal private residence there should not be any additional SDLT to pay over the standard rate. 

She's been told by her solicitor it does count as a 2nd property and is liable for the extra stamp duty 

Sounds like some wires getting crossed somewhere - is the solicitor definitely fully aware of exactly what's being proposed, i.e. that she's looking to purchase somewhere in which to live, or in other words a primary residence, not a second home?  Has the solicitor explained anything in writing?

Grumpy_chap

gadger999 said:

mebu60 said:

As she is replacing her principal private residence there should not be any additional SDLT to pay over the standard rate. 

She's been told by her solicitor it does count as a 2nd property and is liable for the extra stamp duty 

It seems as though the Solicitor may be mistaken.
If you sell your PPR and buy another PPR, standard rate SDLT applies.
If the sale and purchase are not aligned in dates, the higher rate may apply but then reclaim so long as current PPR is sold within appropriate time limit.

mebu60

gadger999 said:

mebu60 said:

As she is replacing her principal private residence there should not be any additional SDLT to pay over the standard rate. 

She's been told by her solicitor it does count as a 2nd property and is liable for the extra stamp duty 

See @Bookworm105 's response in this thread (different scenario but principle of main home replacement applies):
SDLT on main residence when owning a rental property — MoneySavingExpert Forum