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Where Taxpayers and Advisers Meet

3% Additional Stamp duty on main home?

thenjd
Posts:5
Joined:Thu Mar 23, 2017 9:54 am
3% Additional Stamp duty on main home?

Postby thenjd » Thu Mar 23, 2017 10:43 am

Okay bit of a confusing situation here

I own a mortgaged house (which I bought in 2011) which my now wife has not been added to yet but she has been living there since I bought it.

We married in 2013

In 2015 we bought a buy to let property in joint names

In 2016 just before the SDLT 3% surcharge we bought another buy to let property but due to some bad credit history on my wifes credit report I had to buy the buy to let in my sole name as we were having trouble getting a joint mortgage.

We are now in a position where we want to move home but we want to buy in joint names. As my wife is a joint owner on 1 of the buy to lets will this main residence purchase be classed as a second home and be liable for the 3% surcharge?

Also not sure whether its worth noting but before we met my wife jointly owned a property with her brother but this got sold over 5 years ago.

Any advice will be greatly appreciated as I'm losing sleep at night over this!

Cheers

Nigel

Chewbacca11
Posts:13
Joined:Fri Jun 24, 2016 1:14 pm

Re: 3% Additional Stamp duty on main home?

Postby Chewbacca11 » Thu Mar 23, 2017 1:33 pm

No, providing your are replacing your main residence you wont pay the 3% SDLT surcharge.

There is a good summary on zoopla which explains it: http://www.zoopla.co.uk/discover/buying ... gDdXjsM.97

thenjd
Posts:5
Joined:Thu Mar 23, 2017 9:54 am

Re: 3% Additional Stamp duty on main home?

Postby thenjd » Thu Mar 23, 2017 2:28 pm

Even though my wife already jointly owns another property and does not currently own a main residence?

thenjd
Posts:5
Joined:Thu Mar 23, 2017 9:54 am

Re: 3% Additional Stamp duty on main home?

Postby thenjd » Thu Mar 23, 2017 4:03 pm

so in effect this quote describes the position my wife is in (taken from the link provided:-


Q. Who has to pay it?

A. Anyone who is buying an additional residential property for £40,000 or more. This could mean a holiday home, buy-to-let or even a main residence you plan to live in (more detail on this later).

Even if you already own just a share in another property, it will count so long the share is worth £40,000 or more.

Read more at http://www.zoopla.co.uk/discover/buying ... oss8Lbl.99

thenjd
Posts:5
Joined:Thu Mar 23, 2017 9:54 am

Re: 3% Additional Stamp duty on main home?

Postby thenjd » Thu Mar 23, 2017 4:05 pm

Saying that this quote also describes my situation:-


Q. What if the home I am buying will be my main residence?

'Main residence' refers to the home you live in, not just a property you own. And which home is your main residence will be judged as a matter of 'fact' (for example, where you spend most nights, where the rest of your family lives, where you are registered to vote and where you are signed up to local doctors and dentists). You won't be able to 'elect' a main residence as you can for the purposes of Capital Gains Tax.

Read more at http://www.zoopla.co.uk/discover/buying ... oss8Lbl.99

So does our situation sit somewhere between these to scenarios???

AnthonyR
Posts:322
Joined:Wed Feb 08, 2017 2:33 pm

Re: 3% Additional Stamp duty on main home?

Postby AnthonyR » Thu Mar 23, 2017 7:45 pm

Assuming you sell your home as part of the process, the new home is replacing her main home, which has been sold.

Married couples are treated as an individual person and the legislation doesn't require that they both own "their main home".

So the fact that you as a couple have a main home, which has been sold and replaced means that the 3% won't apply.
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk

thenjd
Posts:5
Joined:Thu Mar 23, 2017 9:54 am

Re: 3% Additional Stamp duty on main home?

Postby thenjd » Fri Mar 24, 2017 10:11 am

Hi Anthony, Thanks for clearing that up. Good news indeed as I really didn't want to move into our next home as the sole owner as it makes things aukward.


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