Stamp duty query

stew510

Sorry if this has been answered before but I've been looking and not yet found an answer to this scenario.

We are in the process of moving house and I'm trying to work out a definitive stamp duty amount.

Our current house is solely in my name (we married several years after I purchased it) and the mortgage payments are made by myself. The house is being sold for £400k with a mortgage of £160k remaining.

We are purchasing (in joint names and mortgage) a new house for £600k, porting the existing mortgage and taking out a new one. Both mortgages will be in joint names.

Am I right in thinking that as well as the standard stamp duty on the new property, my wife will incur stamp duty on the £400k consideration she is now in benefit off? I.e. £200k being gifted to her?

user1977

stew510 said:

Am I right in thinking that as well as the standard stamp duty on the new property, my wife will incur stamp duty on the £400k consideration she is now in benefit off? I.e. £200k being gifted to her?

Where are you getting that idea from? The stamp duty on the purchase is just going to be the standard rate for a £600k purchase.

stew510

user1977 said:

stew510 said:

Am I right in thinking that as well as the standard stamp duty on the new property, my wife will incur stamp duty on the £400k consideration she is now in benefit off? I.e. £200k being gifted to her?

Where are you getting that idea from? The stamp duty on the purchase is just going to be the standard rate for a £600k purchase.

I'm possibly getting confused by the gov.uk website. I was looking at the below example it gives and assuming that it would apply to us...

An example of when you pay Stamp Duty Land Tax when no money changes hands

The owner of a property valued at £700,000, with an outstanding mortgage of £600,000, transfers half the property to their partner when they marry in October 2022. Their partner takes on 50% of the mortgage (£300,000).

HMRC charge Stamp Duty Land Tax on the amount paid for a property or the amount of ‘chargeable consideration’ given.

By taking liability for the mortgage, the owner’s partner has given ‘chargeable consideration’ of £300,000 for their share of the property, which is £2,500 Stamp Duty Land Tax (0% of £250,000 + 5% of £50,000)

user1977

stew510 said:

user1977 said:

stew510 said:

Am I right in thinking that as well as the standard stamp duty on the new property, my wife will incur stamp duty on the £400k consideration she is now in benefit off? I.e. £200k being gifted to her?

Where are you getting that idea from? The stamp duty on the purchase is just going to be the standard rate for a £600k purchase.

I'm possibly getting confused by the gov.uk website. I was looking at the below example it gives and assuming that it would apply to us...

An example of when you pay Stamp Duty Land Tax when no money changes hands

The owner of a property valued at £700,000, with an outstanding mortgage of £600,000, transfers half the property to their partner when they marry in October 2022. Their partner takes on 50% of the mortgage (£300,000).

But you're not transferring a property to your partner. You're selling one property to a third party, and you (and your spouse) are buying another property from a third party.

stew510

user1977 said:

stew510 said:

user1977 said:

stew510 said:

Am I right in thinking that as well as the standard stamp duty on the new property, my wife will incur stamp duty on the £400k consideration she is now in benefit off? I.e. £200k being gifted to her?

Where are you getting that idea from? The stamp duty on the purchase is just going to be the standard rate for a £600k purchase.

I'm possibly getting confused by the gov.uk website. I was looking at the below example it gives and assuming that it would apply to us...

An example of when you pay Stamp Duty Land Tax when no money changes hands

The owner of a property valued at £700,000, with an outstanding mortgage of £600,000, transfers half the property to their partner when they marry in October 2022. Their partner takes on 50% of the mortgage (£300,000).

But you're not transferring a property to your partner. You're selling one property to a third party, and you (and your spouse) are buying another property from a third party.

Ah ok, I see, that's good! Thank you for clarifying that, was worried we'd need to find extra money but glad we don't!