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Complicated Stamp Duty Question
NicholaRooke
Posts: 1 Newbie
My husband and I are buying a house.
He is technically a home-owner already since he and his sister inherited their parents house, owning 50% of the property each. His sister lives in this property.
He has not lived in the property for 6 years as we have been co-habiting in rental accommodation.
We are now buying our first property, his sister will remain in the inherited house.
It seems stamp duty applies to him, is that right? Even though the inherited property is not his main residence and hasn't been for some time?
Is there any way around this?
He is technically a home-owner already since he and his sister inherited their parents house, owning 50% of the property each. His sister lives in this property.
He has not lived in the property for 6 years as we have been co-habiting in rental accommodation.
We are now buying our first property, his sister will remain in the inherited house.
It seems stamp duty applies to him, is that right? Even though the inherited property is not his main residence and hasn't been for some time?
Is there any way around this?
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Comments
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Not just Stamp Duty, but the Additional 3% Stamp Duty if his share is worth more than £40k.
The additional 3% is solved by selling his half of the house. There isn't a solution to the FTB element as he isn't a first time buyer (owner, in this case)
Everything that is supposed to be in heaven is already here on earth.
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NicholaRooke wrote: »My husband and I are buying a house.
He is technically a home-owner already since he and his sister inherited their parents house, owning 50% of the property each. His sister lives in this property.
He has not lived in the property for 6 years as we have been co-habiting in rental accommodation.
We are now buying our first property, his sister will remain in the inherited house.
It seems stamp duty applies to him, is that right? Even though the inherited property is not his main residence and hasn't been for some time?
Is there any way around this?
When you say. "he is technically a home-owner already," what you actually mean is that he is legally a home-owner already, it's not a technicality.
As well as a legal owner is your husband also a beneficial owner of the property his sister lives in? Can his sister afford to buy him out?0 -
Has he inherited his half share in the last three years? There are special SDLT rules around shares not exceeding 50% acquired in the last three years.0
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Where can I find out about these?0
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the rules are hereWhere can I find out about these?
https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09795
and the example at the bottom covers your scenario0 -
You may also want to look at this resource which has a wide range of SDLT scenarios in the form of Questions and Answers. There may be something here that is similar to your circumstances:
https://www.annlhumphrey.com/sdltquestions/0
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