Do I qualify condition D stamp duty

joshuadeacon94

I'm getting married in 2026. I currently own a leasehold flat in my name only, which I can't sell due to cladding issues. It has around 100 years left on the lease and is on a residential mortgage. I stay most of the time with my partner, who owns her own home (also with a residential mortgage, in her name only).

After we’re married, if she sells her property and we buy a new home together as our main residence, would we qualify for the Condition D exemption from the 3% additional Stamp Duty Land Tax (SDLT) surcharge, even though I’ll still own my flat that’s currently on a residential mortgage?

We could avoid the issue by buying together before the wedding, but with kids, studies, and wedding planning, that’s more stress than we want to take on right now!

Thanks in advance for any clarity.

SDLT_Geek

joshuadeacon94 said:

I'm getting married in 2026. I currently own a leasehold flat in my name only, which I can't sell due to cladding issues. It has around 100 years left on the lease and is on a residential mortgage. I stay most of the time with my partner, who owns her own home (also with a residential mortgage, in her name only).

After we’re married, if she sells her property and we buy a new home together as our main residence, would we qualify for the Condition D exemption from the 3% additional Stamp Duty Land Tax (SDLT) surcharge, even though I’ll still own my flat that’s currently on a residential mortgage?

We could avoid the issue by buying together before the wedding, but with kids, studies, and wedding planning, that’s more stress than we want to take on right now!

Thanks in advance for any clarity.

If you buy together before you get married, with you still owning the flat, then the extra 5% Stamp Duty Land Tax will apply to the whole of the price.

If the purchase is after you are married, then even though you still own the flat, the 5% extra might not apply because of the “replacement exception“ you mention. That is because the purchase could then fail the “condition D“ which you mentioned. 

The replacement exception would depend on you having lived in her property as your “only or main residence”.  That is not just a test of how much time you spend there.  The test would be easier to satisfy if you rent out your flat.

Bookworm225

although the answer has already been given above, for the sake of it example 1 covers the situation post marriage (pre marriage being its opposite obviously)

SDLTM09810 - SDLT - higher rates for additional dwellings: Condition D - further examples - HMRC internal manual - GOV.UK

joshuadeacon94

Thank you. I’m so surprised to learn this and find out that my understanding of the documents was correct. I guess it makes sense, if you’re replacing one home with another, you’re not growing your property portfolio. 

Is it known how HMRC determine whether it’s your main residence, I.e joint bills, electoral register etc. I’m also guessing that getting consent to let on my flat and renting it would be a helpful move too. 

SDLT_Geek

joshuadeacon94 said:

Thank you. I’m so surprised to learn this and find out that my understanding of the documents was correct. I guess it makes sense, if you’re replacing one home with another, you’re not growing your property portfolio. 

Is it known how HMRC determine whether it’s your main residence, I.e joint bills, electoral register etc. I’m also guessing that getting consent to let on my flat and renting it would be a helpful move too. 

There is some guidance here https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09812 on the meaning of "main residence" and the kind of evidence which is relevant where someone splits their time between different homes.

Yes, the SDLT position would be stronger if your flat is rented out, so that you cannot live in it, and your only home is your partner's property.  (Assuming the sale and purchase occur after you marry.)