SDLT

[karenjmorgan]

Please would you clarify my situation as even my solicitor is unsure of the answer.
In 2005 I bought a property for my daughter and I as a main residence.
In 2008 we let it out when I moved in with my boyfriend who I then married in 2014. He has no mortgage and the title deeds are in his sole name.
I am now selling my property and with the proceeds will clear my mortgage and buy a cheaper property for my daughter (who currently lives with us).
Will the higher rate of SDLT apply??
Thanks in advance.

[SteLacca]

The 3% charge applies if you are not replacing your only or main residence. You are not required to own your main residence (though I suspect that you would be deemed to own it as a party in a marriage).

You could simply gift the money to your daughter to purchase the smaller house.

[karenjmorgan]

Thanks.
Would the fact that my husband's house is part of a farm make a difference? When we retire the house would stay with the farm and we would live elsewhere. Similarly I would not inherit it should he died before me.

[maths]

You are not required to own your main residence (though I suspect that you would be deemed to own it as a party in a marriage).

This is incorrect. SDLT requires a "major interest" to be held.

The 3% will apply.

[karenjmorgan]

But I don't own any interest at all in my home-it belongs to my husband. So why would the 3% apply? It seems prejudicial to charge me more for owning my own property. Is there any form of appeal or exceptions to the rule? If I was merely living with him would the higher rate still apply?
Thanks for your help.

[maths]

Following the sale of your initial property and purchase of a new property you will only own one property and hence the 3% wouldn't apply.

However, you are married living with your husband. Accordingly, hypothetically were husband to effect the purchase whilst still owning his own farm residence he would then own two properties and hence the 3% would apply.

Accordingly you are liable to the 3% on purchase.

The replacement residence provision let-outs do not apply.

[karenjmorgan]

It looks as thought the higher rate SDLT will apply in my case but interestingly I have found this on a Zoopla SDLT Guide:-

"And, while it's not an exemption, it's worth noting that if you pay Capital Gains Tax on the sale profits of an additional home, you can offset the cost of the 3% Stamp Duty surcharge against your gain".
Read more at http://www.zoopla.co.uk/discover/buying ... Jw9t16K.99 (see page 12, part of the Q&A)

I can't find any more information on the HMRCWebsite. Can anyone tell me more please?