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    • Fruitloop80
    • By Fruitloop80 13th Jan 19, 4:47 PM
    • 6Posts
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    Fruitloop80
    Can't work out if I need to pay the higher rate SDLT
    • #1
    • 13th Jan 19, 4:47 PM
    Can't work out if I need to pay the higher rate SDLT 13th Jan 19 at 4:47 PM
    Hi,
    I split up with my wife a couple of years ago (she remained in the marital home while I have been privately renting) and we have a BTL in joint names which we are keeping.
    We are currently finalising the process of having me taken off the title deeds of the marital home and I am buying another house to live in.
    Can anyone advise if I will pay the higher rate of SDLT on my new home? I am in Scotland and the purchase price will be less than 145k.

    Thanks
Page 1
    • G_M
    • By G_M 13th Jan 19, 5:08 PM
    • 46,536 Posts
    • 56,515 Thanks
    G_M
    • #2
    • 13th Jan 19, 5:08 PM
    • #2
    • 13th Jan 19, 5:08 PM
    So
    * you own a BTL and are buying a 2nd property?
    * you live in rented, so are not selling your main residence.


    If this were England you'd pay the additional 2nd property SDLT.


    But Scotland may be different......
    • Fruitloop80
    • By Fruitloop80 13th Jan 19, 5:14 PM
    • 6 Posts
    • 0 Thanks
    Fruitloop80
    • #3
    • 13th Jan 19, 5:14 PM
    • #3
    • 13th Jan 19, 5:14 PM
    Yes I own a BTL and am currently living in rented so not selling my main residence.

    Thanks
    • Skibunny40
    • By Skibunny40 13th Jan 19, 5:20 PM
    • 149 Posts
    • 147 Thanks
    Skibunny40
    • #4
    • 13th Jan 19, 5:20 PM
    • #4
    • 13th Jan 19, 5:20 PM
    As I understand it, the LBTT Additional Dwelling Supplement would apply...and it's going up to 4% from 25th January so be quick if you only want to pay 3%...your solicitor will be able to advise you though.
    • Fruitloop80
    • By Fruitloop80 13th Jan 19, 5:25 PM
    • 6 Posts
    • 0 Thanks
    Fruitloop80
    • #5
    • 13th Jan 19, 5:25 PM
    • #5
    • 13th Jan 19, 5:25 PM
    Thanks for your reply.

    I've budgeted for the higher rate but I was hoping that because I was buying a new house as my main residence it would be exempt. I guess my solicitor will keep me right though. Just trying to work things out in my head!
    • 00ec25
    • By 00ec25 13th Jan 19, 5:56 PM
    • 7,513 Posts
    • 7,208 Thanks
    00ec25
    • #6
    • 13th Jan 19, 5:56 PM
    • #6
    • 13th Jan 19, 5:56 PM
    Hi,
    I split up with my wife a couple of years ago (she remained in the marital home while I have been privately renting) and we have a BTL in joint names which we are keeping.
    We are currently finalising the process of having me taken off the title deeds of the marital home and I am buying another house to live in.
    Can anyone advise if I will pay the higher rate of SDLT on my new home? I am in Scotland and the purchase price will be less than 145k.

    Thanks
    Originally posted by Fruitloop80
    I note posters have ignored your separation

    your current rental property is I assume a short lease so is ignored for the purposes of whether you are replacing your main home or not.

    you need to check the rule re 18 months time limit after "separating" and the rule around divorce (if you are now completing that legal stage)

    you are disposing of what was previously your main home....
    • Fruitloop80
    • By Fruitloop80 13th Jan 19, 6:15 PM
    • 6 Posts
    • 0 Thanks
    Fruitloop80
    • #7
    • 13th Jan 19, 6:15 PM
    • #7
    • 13th Jan 19, 6:15 PM
    Yes 00ec25 my rental agreement is a short assured tenancy agreement.

    I've had a look on the gov.uk website but can't find any reference to the 18 month time limit. Do you mean you need to be separated for at least 18 months to be exempt from the additional stamp duty or purchase your new main residence within 18 months?
    • Pixie5740
    • By Pixie5740 13th Jan 19, 6:16 PM
    • 13,608 Posts
    • 19,607 Thanks
    Pixie5740
    • #8
    • 13th Jan 19, 6:16 PM
    • #8
    • 13th Jan 19, 6:16 PM
    Hi,
    I split up with my wife a couple of years ago (she remained in the marital home while I have been privately renting) and we have a BTL in joint names which we are keeping.
    We are currently finalising the process of having me taken off the title deeds of the marital home and I am buying another house to live in.
    Can anyone advise if I will pay the higher rate of SDLT on my new home? I am in Scotland and the purchase price will be less than 145k.

    Thanks
    Originally posted by Fruitloop80
    The answer to the question you asked is no, you won't have to pay the higher rate of SDLT on the purchase. You won't need to pay any SDLT at all since you are in Scotland.

    Your purchase will mean paying LBTT and I think it might include the Additional Dwelling Supplement since you separated "a couple of years ago" so I'm not sure the marital home still counts as your main residence since you've been living elsewhere. As of 25th January 2019 the ADS rate will be an extra 4% not 3%.

    The Revenue Scotland website is as clear as mud though. You can go round and round in circles getting close to the information you want but never quite making it.
    • Fruitloop80
    • By Fruitloop80 13th Jan 19, 6:54 PM
    • 6 Posts
    • 0 Thanks
    Fruitloop80
    • #9
    • 13th Jan 19, 6:54 PM
    • #9
    • 13th Jan 19, 6:54 PM
    Thanks Pixie5740

    Yes the Revenue Scotland isn't very clear. None of the examples seemed to quite fit with my scenario hence my post on here.
    The online calculator states that ADS is a supplement due when someone buys an additional residential property for example, a second home such as a holiday home or an additional home to rent out.
    We separated in October 16 if that makes any difference.

    Thanks
    • Pixie5740
    • By Pixie5740 13th Jan 19, 6:56 PM
    • 13,608 Posts
    • 19,607 Thanks
    Pixie5740
    Thanks Pixie5740

    Yes the Revenue Scotland isn't very clear. None of the examples seemed to quite fit with my scenario hence my post on here.
    The online calculator states that ADS is a supplement due when someone buys an additional residential property for example, a second home such as a holiday home or an additional home to rent out.
    We separated in October 16 if that makes any difference.

    Thanks
    Originally posted by Fruitloop80
    You would be purchasing an additional dwelling since you already own a BTL and will be purchasing another property in addition to it. That's why I think the ADS will apply. I don't think the marital home counts as your main residence anymore.
    • AnotherJoe
    • By AnotherJoe 13th Jan 19, 6:58 PM
    • 12,068 Posts
    • 14,123 Thanks
    AnotherJoe
    OP says he is being "taken off the title deeds".
    This implies, he is giving it away.
    Seems to me there's a possibility that if ex wife pays him something for it, even 1, then since he is selling his previous residence, he is OK.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • Fruitloop80
    • By Fruitloop80 13th Jan 19, 7:02 PM
    • 6 Posts
    • 0 Thanks
    Fruitloop80
    As part of the separation agreement I'm receiving a cash settlement from the equity so I don't know if that would count as me selling it as AnotherJoe points out.
    Sorry, I'm new to all this!
    • Pixie5740
    • By Pixie5740 13th Jan 19, 7:05 PM
    • 13,608 Posts
    • 19,607 Thanks
    Pixie5740
    OP says he is being "taken off the title deeds".
    This implies, he is giving it away.
    Seems to me there's a possibility that if ex wife pays him something for it, even 1, then since he is selling his previous residence, he is OK.
    Originally posted by AnotherJoe
    The title deeds are a red herring. The OP hasn't lived in the property since October 2016 so I don't think it counts as his main residence.

    In terms of the ADS they are no longer treated as a married couple.

    The above provisions do not apply where the buyer and the buyer's spouse or civil partner have separated. Parties will be considered to have separated where they no longer live together and they do not intend to live together again.
    https://www.revenue.scot/land-buildings-transaction-tax/guidance/lbtt-legislation-guidance/lbtt10001-lbtt-additional-dwell-18

    Meaning the marital home wouldn't pass the only or main residence test for the OP.

    https://www.revenue.scot/land-buildings-transaction-tax/guidance/lbtt-legislation-guidance/lbtt10001-lbtt-additional-dwell-16
    • 00ec25
    • By 00ec25 13th Jan 19, 7:58 PM
    • 7,513 Posts
    • 7,208 Thanks
    00ec25
    Yes 00ec25 my rental agreement is a short assured tenancy agreement.

    I've had a look on the gov.uk website but can't find any reference to the 18 month time limit. Do you mean you need to be separated for at least 18 months to be exempt from the additional stamp duty or purchase your new main residence within 18 months?
    Originally posted by Fruitloop80
    I meant had you separated and moved out of the ex marital home within the last 18 months

    you have now clarified that it is more than 18 months, so your stay in rental accommodation is no longer relevant as you are outside the window of opportunity in which to claim you are replacing your old home as part of a separation agreement. Had you still been in time, your removal of your share by transfer to her would be classed as a "disposal" - even in Scotland disposal means the same as for us: sell, gift, or otherwise transfer ownership.

    Therefore, as that is no longer the case, the ADS rate applies.
    Last edited by 00ec25; 13-01-2019 at 8:01 PM.
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