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Higher rate stamp duty due?

Insequence
Insequence Posts: 5 Forumite
in House buying, renting & selling
My daughter wishes to buy her own home - first time buyer. She has however a part interest in another house. She does not and has never lived in this house and no money has changed hands (a gift). Because of this interest will she have to pay the higher stamp duty (or any stamp duty) on her new purchase. If she is removed from the title deeds of this other property will she then be truly eligible to buy her new house as a first time buyer without any other additional property implication and without any stamp duty implication (house price £290.000).
Thank you for any help on this.

Comments

  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Yes, she will need to pay the +3% SDLT, because she already part-owns another property, assuming her part-ownership is worth more than £40k.

    Yes, if she gives up that part-ownership, then she'll no longer be liable for the +3% (but the decision will cost her considerably more than the £8,700 tax).

    No, she will not be able to claim she's an FTB if she gives up or sells that part-ownership, because she will still have previously part-owned a property. I presume the other part-owner(s) are unwilling to buy her part off her for the market value? There may still be a CGT consideration even if she gives it up for £0 - she was gifted an asset of value, and is now gifting it away.

    How she obtained it - purchase, inheritance, gift - is irrelevant.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    Insequence wrote: »
    My daughter wishes to buy her own home - first time buyer. She has however a part interest in another house. She does not and has never lived in this house and no money has changed hands (a gift). Because of this interest will she have to pay the higher stamp duty (or any stamp duty) on her new purchase. If she is removed from the title deeds of this other property will she then be truly eligible to buy her new house as a first time buyer without any other additional property implication and without any stamp duty implication (house price £290.000).
    Thank you for any help on this.

    No good deed goes unpunished.
    Can she sell her share in this property to enable her to fund this new purchase ?
    Otherwise the "gift" has been a poisoned chalice and has actually cost her money.
  • Caz3121
    Caz3121 Posts: 15,918 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I assume she has been receiving and declaring her share of the rental payments to HMRC. Does she want to lose that income?
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Caz3121 wrote: »
    I assume she has been receiving and declaring her share of the rental payments to HMRC. Does she want to lose that income?
    We don't know it's rented. It may be an attempt at an IHT dodge by a well-meaning but misguided parent.
This discussion has been closed.
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