How to buy a second property

GDB2222

sheramber said:

silvercar said:

I don’t think a cousin counts as a related party, as far as SDLT is concerned. So I’d expect the SDLT to be calculated on the actual amount payable, which would be zero on amounts under £125k.

Any IHT would be on the aunts estate, not a concern for you as you aren’t a benefactor, other than the Deed of Variation giving you half the property - I’m guessing there is money in the estate also, if the total estate is over the IHT threshold.

There is no CGT on death.

So all in all, I don’t think you have any tax worries.

Would buying the balance  of the bungalow count  for additional stamp charge for second home?

I assumed the 5% extra sdlt would apply to the £100k, if the op buys this from the estate.

silvercar

Apologies, I missed the extra £5k tax as it would be a second property for you.

If your son was happy for the bungalow to go into his name, then the higher sdlt would be avoided. That comes with the loss of his first time buyer status by owning the bungalow. He could get a mortgage on it probably if you were a guarantor or ‘joint borrower, single proprietor’ mortgage, where the property is put in your son’s name but both of you are on the mortgage.

Bookworm225

as SDLT_geek appears to be avoiding this thread 

you own 50% of the property as a direct inheritance within the last 3 years but that property is not your main home, therefore purchase of further shares in it will trigger higher rate SDLT on the amount paid for that extra share.

SDLTM09795 - SDLT - higher rates for additional dwellings: Condition C – interests inherited in the last three years - Para 16 Sch 4ZA FA2003 - HMRC internal manual - GOV.UK