Higher stamp duty??

[Vezza87]

Hi

So me and my partner both own properties, we both live in my house and his brother lives in his property. We are buying a new home together and selling my house (main residence). Will we still have to pay the higher stamp duty due to his other property?

[someone]

Are you married?

Will the new property be in joint names or just your name?

[SDLT Geek]

If you are married or in a civil partnership then I would expect (depending on the details) you to be able to escape the higher rates of SDLT because of the exception from the surcharge for the replacement of an only or main residence.

If you are not married / civil partners then your partner cannot make use of your sale; he has another property and so if he is a joint buyer with you, the surcharge is likely to be due. But it is worth checking his property owning history in case there is something in that which helps (like a sale of a property he used to live in).

[Vezza87]

Hi, no we are not married and the new house will be in both names so guessing there's no way around it? Although he has not lived in his property it is not set up as a btl or anything as his family live their so guessing this will be viewed as a main residence - annoying

[SDLT Geek]

One obvious solution would be for your partner to dispose of all of his interest in his property, or enough of it so that the interest he retains is worth less than £40K. Perhaps he can sell the property to his brother?

I am assuming the other obvious solution (getting married before your sale) is not on the cards.

You are getting confused about what is a main residence, saying the property your partner owns "will be viewed as a main residence". A person's residence is the property where they live with a sufficient degree of permanence and expectation of continuity. Your partner lives with you, so if that has been seen as long term then your house is his residence. Your partner has never lived in the property he owns so it is not his residence. Rather it is a dwelling that he owns and which therefore is likely to count against him when he buys another dwelling. The higher rates are due on the purchase of additional properties, he already has one which is why the higher rates are likely to be due if you proceed as planned.