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Where Taxpayers and Advisers Meet

STAMP DUTY IF I FINANCE THE PURCHASE OF A HOUSE FOR MY WIFE

clkbrk
Posts:2
Joined:Tue Feb 21, 2017 5:12 pm
STAMP DUTY IF I FINANCE THE PURCHASE OF A HOUSE FOR MY WIFE

Postby clkbrk » Tue Feb 21, 2017 5:32 pm

I own a property which is currently been rented as my wife and I are both living overseas due to my work in Europe. This property is currently in the process of being transferred to a property company owned by my son. As we are planning to return to the UK soon we are looking around for a house as our main residence. The questions I have for the forum are:
i) As I am transferring the owned property to a company as a gift, will I be liable to the 3% additional SDLT when I buy another property on my return to the UK?
ii) If the answer is yes, will I be liable to the additional 3% SDLT if I fully finance my wife to buy the other property 100% cash funded by me?

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: STAMP DUTY IF I FINANCE THE PURCHASE OF A HOUSE FOR MY WIFE

Postby maths » Wed Feb 22, 2017 5:31 pm

On the basis the beneficial interest in the property is being transferred to the company (ie not just the legal title) then no 3% SDLT charge will apply should you then purchase another property (as you will only own one property).

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: STAMP DUTY IF I FINANCE THE PURCHASE OF A HOUSE FOR MY WIFE

Postby maths » Wed Feb 22, 2017 10:00 pm

Should have added that SDLT will arise on gift to company.

clkbrk
Posts:2
Joined:Tue Feb 21, 2017 5:12 pm

Re: STAMP DUTY IF I FINANCE THE PURCHASE OF A HOUSE FOR MY WIFE

Postby clkbrk » Thu Feb 23, 2017 11:35 am

Thank you for your helpful reply. On your final remark on gifting the property to the company, can I assume zero stamp duty if the house value is less than 125000 GBP?

SteLacca
Posts:448
Joined:Fri Aug 07, 2015 2:17 pm

Re: STAMP DUTY IF I FINANCE THE PURCHASE OF A HOUSE FOR MY WIFE

Postby SteLacca » Thu Feb 23, 2017 5:34 pm

A company cannot have an only or main residence, and so will pay 3% SDLT minimum on properties valued above £40,000.


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