Second property stamp duty

[Adrianpottinger]

Hi

Me and my fiance are about to buy our first home together and are having a nightmare getting the right advice with regard to second property stamp duty.

We are living together in our main residence which is owned solely by my fiance. I currently rent out the flat I solely have owned since 2005.

We have now accepted an offer on our current main residence (the house we live in now) and have made an offer that has been accepted on a new house that we plan to live in as our main residence and will be jointly owned.

I plan to keep my flat that is currently rented.

We do not believe we should be paying the higher rate as we are replacing our main residence but the information out there is so conflicting even on the hmrc guidance as there appears to be many changes from when the guidance notes were first issued.

I would really appreciate some concrete advice as don't want a hefty bill sneaking up on us later on.

Many thanks

A

[someone]

If you are not married when you complete then you will have to pay the additional SDLT. If you are married then you will not.

If you give your flat to your fiancee before you complete then you will not have to pay the additional SDLT but there may be CGT and SDLT to pay on the gift so it might not save you anything at all.

If the new property is owned by your fiancee only (you can own a maximum of 40K of it) then you will not have to pay the additional SDLT.

My, non expert, understanding.

[Adrianpottinger]

Hi

Thank you for the reply.

We are actually getting married on 21St of July. If we complete after this date does that mean we will not pay the additional stamp duty?

Regards
A

[someone]

That is my understanding.

[maths]

Don't disagree with someone's views.

It would seem best "SDLT" option is to complete on current sale and purchase post marriage date. Or complete on sale but attempt to defer completion on purchase until post marriage (although vendors may not be happy).

OR bring marriage date forward!!

You could complete on purchase asap but only sell current residence after marriage date. 3% SDLT would be payable but recoverable.

[Adrianpottinger]

Hi maths

Thanks for your reply.

I have another technical question if we exchange before we get married but complete sale after we get married does that mean we avoid the higher rate?

Really appreciate the advice.

Regards

A

[maths]

The critical date (with exceptions) for SDLT is the date of "completion" not `'exchange".

[Adrianpottinger]

Thanks again

That's what I suspected we are trying to push the completion of the new property until after we are married

We still have the problem of a solicitor who believes we should be paying the higher rate.

Any advice on how to put it to them so we get it documented that we should be paying the lower rate?

Regards
A

[maths]

Ask him to email you with the reference to the specific legislation which he believes supports his position re the 3% SDLT charge as you intend to have the advice checked out with a specialist tax advisor.

[Adrianpottinger]

Thanks I will post how I get on.

Regards A