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Where Taxpayers and Advisers Meet
Additional 3% stamp duty query
Hope someone can clarify for us. My partner has been living with me for 13 years but I am the only person on the mortgage/deeds. He owns a property that he rents out to his brother. We are selling my property to buy a house together but our solicitor has just told us that as he isn't selling his property that we will need to pay the additional 3% stamp duty. As he's not on the current deeds it is not classed as his main residence, is this right?
Re: Additional 3% stamp duty query
It depends on whether you are married (and assuming this is something else that didn't change in the budget)Hope someone can clarify for us. My partner has been living with me for 13 years but I am the only person on the mortgage/deeds. He owns a property that he rents out to his brother. We are selling my property to buy a house together but our solicitor has just told us that as he isn't selling his property that we will need to pay the additional 3% stamp duty. As he's not on the current deeds it is not classed as his main residence, is this right?
If you are married then the 3% is not due.
If you not married then it is - but not if you buy it in your name alone - might not be possible if there's a mortgage involved.
Unfortunately, disposing of his let property after purchase won't get the 3% back either.
Re: Additional 3% stamp duty query
If you buy the new property with a joint mortgage but then jointly hold it for you and your co-habitee beneficially as to 100%/0% the 3% SDLT charge will be avoided.
Re: Additional 3% stamp duty query
I agree with the points Someone and Maths make.
There could be another angle. You say you are the only party on the title / deeds to your home. That is not in itself conclusive as to beneficial ownership, it is beneficial ownersip which is relevant to SDLT. Your partner clearly lives in your house, it is his main residence. The SDLT problem arises if you are not married and if he has no share in it.
Shares in properties can arise in a number of ways. For example if the party not on the deeds spends a lot of money on an extension with the parties agreeing that the property is to be jointly owned.
If your partner has a share in your home then you can jointly sell it and buy another to live in and escape the surcharge even though your partner retains another property.
There could be another angle. You say you are the only party on the title / deeds to your home. That is not in itself conclusive as to beneficial ownership, it is beneficial ownersip which is relevant to SDLT. Your partner clearly lives in your house, it is his main residence. The SDLT problem arises if you are not married and if he has no share in it.
Shares in properties can arise in a number of ways. For example if the party not on the deeds spends a lot of money on an extension with the parties agreeing that the property is to be jointly owned.
If your partner has a share in your home then you can jointly sell it and buy another to live in and escape the surcharge even though your partner retains another property.
