We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Stamp Duty.. advice on charges

Hi. I'm looking for a little advice please(though I think I know the answer).

Following my father passing away, I now have a share of the proceeds from his estate and this is going to enable me to buy a house.

I am currently renting and have been doing so for the last 10 years following on from a split with my then partner. Now, the issue is, we both still own the property she lives (and both my children are back there at the moment). Even though the deeds show we own the property equally, in fact I only have a 22% financial share of it (legal docs all signed to quality this etc).

Now, following looking at online info, it seems to me like this disgraceful money grabbing tax is going to bite me hard as my new home will be seen as a second property. Except that digging in to semantics, it will be my MAIN home. There currently seems no possibility in her buying me out. What can I do? Maybe sign over my half of the property to her but then I feel I could be seriously risking my financial share...

Any ideas?? Help!
Thanks
Mark

Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    4strings wrote: »
    Hi. I'm looking for a little advice please(though I think I know the answer).

    Following my father passing away, I now have a share of the proceeds from his estate and this is going to enable me to buy a house.

    I am currently renting and have been doing so for the last 10 years following on from a split with my then partner. Now, the issue is, we both still own the property she lives (and both my children are back there at the moment). Even though the deeds show we own the property equally, in fact I only have a 22% financial share of it (legal docs all signed to quality this etc).

    Now, following looking at online info, it seems to me like this disgraceful money grabbing tax is going to bite me hard as my new home will be seen as a second property. Except that digging in to semantics, it will be my MAIN home. There currently seems no possibility in her buying me out. What can I do? Maybe sign over my half of the property to her but then I feel I could be seriously risking my financial share...

    Any ideas?? Help!
    Thanks
    Mark

    Is your 22% share worth more than £40k? Is your ex an ex spouse?
  • 4strings
    4strings Posts: 21 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Pixie5740 wrote: »
    Is your 22% share worth more than £40k? Is your ex an ex spouse?

    Yeah, probably around £60k. Nope, never married. Also should have said there is no outstanding mortgage on the old house.
  • SDLT_Geek
    SDLT_Geek Posts: 3,040 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    I wonder if your ex could buy enough of your share so that what you have left is worth under £40,000?

    Or did you, after buying the property with your ex, sell another property which you used to live in?
  • 4strings
    4strings Posts: 21 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    SDLT_Geek wrote: »
    I wonder if your ex could buy enough of your share so that what you have left is worth under £40,000?

    Or did you, after buying the property with your ex, sell another property which you used to live in?

    No, that was a first time buy. I could ask her but I'm not feeling positive!

    Can you explain what the £40k limit is please?
  • SDLT_Geek
    SDLT_Geek Posts: 3,040 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    If your interest in the other property owned is worth less than £40K then it does not count against you for the purposes of the higher rates of SDLT. It is explained here https://www.zoopla.co.uk/discover/buying/q-a-new-3-stamp-duty-surcharges/ and here https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09780
  • 4strings
    4strings Posts: 21 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    SDLT_Geek wrote: »
    If your interest in the other property owned is worth less than £40K then it does not count against you for the purposes of the higher rates of SDLT. It is explained here https://www.zoopla.co.uk/discover/buying/q-a-new-3-stamp-duty-surcharges/ and here https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09780

    Thank you!
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.7K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455.1K Spending & Discounts
  • 246.8K Work, Benefits & Business
  • 603.2K Mortgages, Homes & Bills
  • 178.2K Life & Family
  • 260.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.