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Where Taxpayers and Advisers Meet

3% penal stamp tax on second home

george price
Posts:27
Joined:Fri Feb 11, 2011 9:37 pm
3% penal stamp tax on second home

Postby george price » Mon Sep 12, 2016 9:10 am

I am buying a home with jointly with my fiance completion next week. We will get married nest year in August 2017.
I had bought a small buy to let flat quite some time ago to kickstart a pension, being self employed, therefore, I will be considered for the 3% penal stamp duty as second home buyer.
However, my fiance is not a home owner, therefore would she be liable for a share of the 3% penal stamp duty or is it that as 50% joint ownership, I would only have to pay half the 3% penal stamp tax ie 1.50% and my fiance will not have to pay anything?

Thanks

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: 3% penal stamp tax on second home

Postby section 44 » Mon Sep 12, 2016 12:03 pm

As you and your fiancé are buying together you both be liable for the additional 3% stamp duty land tax

george price
Posts:27
Joined:Fri Feb 11, 2011 9:37 pm

Re: 3% penal stamp tax on second home

Postby george price » Tue Oct 04, 2016 4:28 pm

Thanks for the reply, it seems somewhat unfair that my fiance being a first time buyer has to also jointly pay half of the 3 % penal stamp duty applicable to second homes due to becoming joint owner.

JRG
Posts:424
Joined:Wed Feb 03, 2010 4:40 pm

Re: 3% penal stamp tax on second home

Postby JRG » Thu Nov 03, 2016 11:48 am

If the house you're buying is worth more than the flat you've got you could sell the flat, then buy the house, then buy another flat.
Note: Do proper costings because it wouldn't be worth doing if the flat selling & buying fees exceed what you'd pay in the 3% penal stamp duty.


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