Money Moral Dilemma: Should I pay half the Stamp Duty on the house I'm buying with my boyfriend?

MSE_Kelvin

This week's MoneySaver who wants advice asks...

I'm buying a house with my boyfriend, which will be the first property I own. But I won't get first-time buyers' relief on the Stamp Duty, as my boyfriend already owns a property, so we'll have to pay an extra £5,000 in tax. Should I pay half of it, as half of the house we're buying will be mine, or should he pay the whole cost, as his circumstances are the reason we have to pay it?

Unfortunately the MSE team can't answer Money Moral Dilemma questions as contributions are emailed in or suggested in person. They are intended to be a point of debate and discussed at face value. Remember that behind each dilemma there is a real person so, as the forum rules say, please keep it kind and keep it clean.

If you haven’t already, join the forum to reply.
Got a Money Moral Dilemma of your own? Suggest an MMD.
View past Money Moral Dilemmas.

theartfullodger

He/she should get advice from e.g. solicitor over the documents covering the agreement over purchase, shares, who pays mortgage, what happens if they split etc etc.   A minefield:  Stamp duty "shares" is frankly just a minor part of the bigger picture.

Artful, now on 3rd "successful" marriage....

Hope things work out for him/her.

spyros_455

Seems to me like you should pay half. On paper, you're buying half the house, therefore half of all costs are yours.

I think the only scenario where it's fair to pay no stamp duty is if there is a reasonable scenario where you wouldn't be paying it. That's the scenario where you're able to and willing to purchase the house completely on your own. Is that scenario realistic? If it is, then it could be said that you're compromising by buying a house with your partner. As part of your boyfriend's side of the compromise, you can discuss for you to avoid the stamp duty.

But, there was no mention of that, which seems like it's a clear 50-50 purchase with no alternative. In that case, it seems clear that you should pay 50-50 on all costs.

That was the technical side only. From a relationship perspective, it might also be a bit nitpicky to bring it up and I would advise paying half of it without mentioning it.

JC2068

It does seem unfair that you’ve been hit with the charge because of his position, but as you are jointly in this together I think it should probably be covered in the proportion in which you are contributing towards the purchase generally. E.g. if you plan to own half the house each, pay half the mortgage each, then probably cover the stamp duty cost in the same way. Not really a right or wrong answer here though as is very specific to your relationship and finances. 

keithyno.1

I think you should pay half of it. Alternatively, maybe you should have chosen someone else as a boyfriend who, like yourself, doesn't already own a property. 

Marcon

Have you asked him how he feels? Doesn't sound much like a true partnership, so maybe thinking twice now while you still can would be no bad idea.

Rd1994

You should split the cost, it’s your choice to buy a house with him and you have chosen to. 

Flipflop13

As he already had a home is he putting more into the property deposit and is it getting you a better mortgage deal?
You might have lost out on stamp duty but he may have helped you gain in other ways so yes I think you should pay half as you are in this purchase together. 

Remember to make sure there’s legal protection in place to cover who is contributing what regardless of the stamp duty issue.

SStitanic

Can you afford to buy it on your own? If so then he should pay it as he will benefit at some point from the sale of the other house. If you can’t afford the house on your own then split it because otherwise you wouldn’t be getting the house at all.

denem

Get married, get advice, get security.

Lindamar_

I agree with the majority of other members. If you want your financial arrangements to be petty things will soon unravel. All house costs should now be shared unless you both agree otherwise. I assume he had the deposit to allow you to buy in the first place or have you already split this cost?