Stamp duty

pinklady756

Looking for some advice. My husband retained an interest in his former matrimonial home 5% stake just because of the mortgage. This would be transferred to her in a few years when the mortgage is paid off.

He moved into the house I own before we married so it’s my name. We’re now looking to move and buy a house together but worried about stamp duty, would it be considered a second home for him?

Or is there an option that it’s only in my name? We don’t have an additional £15k plus to pay extra stamp duty 😟

_Penny_Dreadful

pinklady756 said:

Looking for some advice. My husband retained an interest in his former matrimonial home 5% stake just because of the mortgage. This would be transferred to her in a few years when the mortgage is paid off.

He moved into the house I own before we married so it’s my name. We’re now looking to move and buy a house together but worried about stamp duty, would it be considered a second home for him?

Or is there an option that it’s only in my name? We don’t have an additional £15k plus to pay extra stamp duty 😟

As a married couple the home you live in now is your main residence even if it is solely in your name. Therefore, as a couple you will be treated as replacing your main residence (providing you are selling your current home whilst purchasing your new home) and the higher rate of SDLT will not apply. 

SDLT_Geek

_Penny_Dreadful said:

pinklady756 said:

Looking for some advice. My husband retained an interest in his former matrimonial home 5% stake just because of the mortgage. This would be transferred to her in a few years when the mortgage is paid off.

He moved into the house I own before we married so it’s my name. We’re now looking to move and buy a house together but worried about stamp duty, would it be considered a second home for him?

Or is there an option that it’s only in my name? We don’t have an additional £15k plus to pay extra stamp duty 😟

As a married couple the home you live in now is your main residence even if it is solely in your name. Therefore, as a couple you will be treated as replacing your main residence (providing you are selling your current home whilst purchasing your new home) and the higher rate of SDLT will not apply. 

Assuming OP is buying in England (so the relevant stamp duty is stamp duty land tax) then that is likely right.

Also, the 5% retained interest might be worth under £40,000, which would be another reason why the extra 5% SDLT would not apply.

Or the share might be retained pursuant to a "property adjustment order" in divorce proceedings, which would be yet another reason for the extra 5% not to apply.

_Penny_Dreadful

SDLT_Geek said:

_Penny_Dreadful said:

pinklady756 said:

Looking for some advice. My husband retained an interest in his former matrimonial home 5% stake just because of the mortgage. This would be transferred to her in a few years when the mortgage is paid off.

He moved into the house I own before we married so it’s my name. We’re now looking to move and buy a house together but worried about stamp duty, would it be considered a second home for him?

Or is there an option that it’s only in my name? We don’t have an additional £15k plus to pay extra stamp duty 😟

As a married couple the home you live in now is your main residence even if it is solely in your name. Therefore, as a couple you will be treated as replacing your main residence (providing you are selling your current home whilst purchasing your new home) and the higher rate of SDLT will not apply. 

Assuming OP is buying in England (so the relevant stamp duty is stamp duty land tax) then that is likely right.

Also, the 5% retained interest might be worth under £40,000, which would be another reason why the extra 5% SDLT would not apply.

Or the share might be retained pursuant to a "property adjustment order" in divorce proceedings, which would be yet another reason for the extra 5% not to apply.

The main residence replacement for married couples works the same for LBTT and LTT. In Scotland you don’t even need to be a married couple for it to work, just cohabiting will suffice.