Do I need to pay Higher Rate Stamp Duty?

alzicar

Hi all,

I'm after some information regarding higher rate stamp duty.... 
To give you more of a background on my current situation:

• I own my current house with my husband which is our main residence
• My husband is named on the title deed of his parents house, however does not live there
• We are selling our current home and buying a new property that will replace our current house
• We have carried out a transfer of equity to remove my husband's name out of the title deed of his parents house, however we don't think it will be processed by Land Registry in time before purchasing our new house due to their delay

Just after some answers in case the transfer of equity is not processed in time.

If my understanding is correct - as we are married, we are replacing our main residence and I will own only 1 property at the end of the process, we shouldn't be liable for higher rate? Is it correct?

We paid higher rate stamp duty on our current home which is slightly confusing but if I understand correctly it is because we were previously renting and weren't married.

Any more information to confirm what I'm thinking would be much appreciated

Thanks!!

EssexHebridean

You can probably ask the LR to expedite the application for the Transfer of equity on the basis that it makes a material difference to your Stamp Duty position when your upcoming sale and purchase goes through. 

anselld

EssexHebridean said:

You can probably ask the LR to expedite the application for the Transfer of equity on the basis that it makes a material difference to your Stamp Duty position when your upcoming sale and purchase goes through. 

Although it does not make a material difference.  OP would not pay higher rate anyway if they are replacing main residence.

SDLT_Geek

alzicar said:

Hi all,

I'm after some information regarding higher rate stamp duty.... 
To give you more of a background on my current situation:

• I own my current house with my husband which is our main residence
• My husband is named on the title deed of his parents house, however does not live there
• We are selling our current home and buying a new property that will replace our current house
• We have carried out a transfer of equity to remove my husband's name out of the title deed of his parents house, however we don't think it will be processed by Land Registry in time before purchasing our new house due to their delay

Just after some answers in case the transfer of equity is not processed in time.

If my understanding is correct - as we are married, we are replacing our main residence and I will own only 1 property at the end of the process, we shouldn't be liable for higher rate? Is it correct?

We paid higher rate stamp duty on our current home which is slightly confusing but if I understand correctly it is because we were previously renting and weren't married.

Any more information to confirm what I'm thinking would be much appreciated

Thanks!!

The property you are buying is in England, so the relevant stamp duty is stamp duty land tax?

If so, it seems you each meet the conditions for the "replacement" of only or main residence rules, so the 5% extra would not apply even with your husband having a share in another property.  There is guidance on the conditions here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800

alzicar

In England yes

Thanks all! this reassures me