Stamp duty confusion

englishloveuk

my son has saved for years to buy his first house. His offer on a house has been accepted. A few years ago he married his long time girlfriend who already owned a house. She is the sold owner on the deeds.
this new house will be their main home as she has rented out her own house. My son will be the only owner on the new house. How does stamp duty work. He thinks he has to pay just over £12000 but I don’t think it’s so much according to the HMRC stamp duty calculation. He’s sure he’s not excepting from paying it all as he’s married and his wife has a house. But this is his first time but and will be their main home. Anyone any advice

user1977

They're a married couple increasing the number of houses they own, so the additional rate applies to the purchase. Doesn't matter whether the houses are in separate names if they're married. They avoid it by either (a) first getting divorced or (b) selling the first house when they buy the second.

englishloveuk

thank you - I was hoping he could reduce it - but seems not. Another way to take more from you. 😞

QrizB

Another way to take more from you.

It's a tax on second homes, to discourage people from having second homes.

it's easy to avoid; don't have a second home.

Keep_pedalling

if she decides that being a landlord is to much hassle and sells her property within 3 years of them buying the new place the additional tax can be claimed back.

Caz3121

https://forums.moneysavingexpert.com/discussion/comment/82017049#Comment_82017049

not sure from the post whether property will be rented from new purchase or whether it is already rented out…It would need to be sold within 3 years of last living in it as principal residence which may be less time than 3 years from purchase

SDLT_Geek

https://forums.moneysavingexpert.com/discussion/comment/82017152#Comment_82017152

That is nearly right, but not quite. For the extra 5% to be recoverable on the husband's purchase, two separate conditions both need to be met:

(a) The wife had lived in her property as her only or main residence at some point within the three years before the completion of the husband's purchase.

(b) The wife sells her property within the the three years after the husband completes his purchase of the new property.

(There are other conditions to meet, but these are the key ones here.)