Stamp Duty (buying together) partner first time buyer

stattman

Hi Forum,

I own my own house only I am on 5e deeds. My partner cohabits with me and we are considering moving.

We would like a house together as our own. She has never owned a property so if we were to buy a house in both our names / joint mortgage holders, would there be any stamp duty relief on her share (e.g. 50%) as I would not qualify.

Interested in getting any views on this.

Regards
Mark
 

pinkshoes

stattman said:

Hi Forum,

I own my own house only I am on 5e deeds. My partner cohabits with me and we are considering moving.

We would like a house together as our own. She has never owned a property so if we were to buy a house in both our names / joint mortgage holders, would there be any stamp duty relief on her share (e.g. 50%) as I would not qualify.

Interested in getting any views on this.

Regards
Mark
 

No, if one of you is not a first time buyer, then you will have to pay the full stamp duty. 

The only way round this would be to make HER the sole owner of the property (assuming you're not married to this person). 

Bookworm105

Stamp Duty Land Tax relief for land or property transactions - GOV.UK

First-Time Buyers’ Relief

If you, and anyone else you’re buying with, are first time buyers of a residential property, you can claim relief if both of the following apply:

• you intend to occupy the property as your main residence
• the purchase price is no more than £625,000

SDLT_Geek

stattman said:

Hi Forum,

I own my own house only I am on 5e deeds. My partner cohabits with me and we are considering moving.

We would like a house together as our own. She has never owned a property so if we were to buy a house in both our names / joint mortgage holders, would there be any stamp duty relief on her share (e.g. 50%) as I would not qualify.

Interested in getting any views on this.

Regards
Mark
 

I agree that first time buyers' relief will not be available if you buy together.  The relief is "all or nothing".

You are selling your existing house presumably, so at least the 5% extra SDLT does not apply.

stattman

SDLT_Geek said:

You are selling your existing house presumably, so at least the 5% extra SDLT does not apply.

Correct, I’d be selling my house. Can you explain about the 5% extra not applying? I’m assuming related to a second home? Is there a period where we can buy the new whilst we sell the old, without paying the extra? 

LeafGreen

stattman said:

SDLT_Geek said:

You are selling your existing house presumably, so at least the 5% extra SDLT does not apply.

Correct, I’d be selling my house. Can you explain about the 5% extra not applying? I’m assuming related to a second home? Is there a period where we can buy the new whilst we sell the old, without paying the extra? 

If you were keeping both houses, there would be an additional stamp duty surcharge on top of the regular stamp duty as it would be considered a 2nd home.  But as you are not keeping both, that surcharge would not apply.

The only way round this would be to make HER the sole owner of the property (assuming you're not married to this person). 

And just to comment on this earlier remark - making your partner the sole owner probably isn't in your own best interests long term.

stattman

In the long run the price of stamp duty is a small price. Thanks everyone! 

Flugelhorn

if you buy the new before selling the old you pay the extra 5% but can claim it back when you sell the old one (so long as it is within a period of time ? 2/ 3 years)