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Complicated Stamp Duty Question

NicholaRooke
NicholaRooke Posts: 1 Newbie
in House buying, renting & selling
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?

Comments

  • Doozergirl
    Doozergirl Posts: 33,813 Forumite
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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)

    :o
    Everything that is supposed to be in heaven is already here on earth.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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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?
  • SDLT_Geek
    SDLT_Geek Posts: 2,496 Forumite
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    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.
  • susansday
    susansday Posts: 8 Forumite
    Where can I find out about these?
  • frugalmacdugal
    frugalmacdugal Posts: 10,077 Forumite
    Name Dropper First Post Photogenic First Anniversary
    Hi,



    have a look here.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    Combo Breaker First Post
    edited 10 September 2018 at 6:04PM
    susansday wrote: »
    Where can I find out about these?
    the rules are here
    https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09795

    and the example at the bottom covers your scenario
  • Hoseman
    Hoseman Posts: 383 Forumite
    First Anniversary Combo Breaker
    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/
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