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Stamp Duty.. advice on charges

4strings
4strings Posts: 20 Forumite
First Anniversary First Post Combo Breaker
in House buying, renting & selling
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
    Name Dropper First Post Photogenic First Anniversary
    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: 20 Forumite
    First Anniversary First Post 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: 2,489 Forumite
    First Anniversary First Post 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: 20 Forumite
    First Anniversary First Post 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: 2,489 Forumite
    First Anniversary First Post 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: 20 Forumite
    First Anniversary First Post 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!
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