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Where Taxpayers and Advisers Meet

Buying into partner's property

Seaswift
Posts:2
Joined:Thu May 03, 2018 8:08 am
Buying into partner's property

Postby Seaswift » Thu May 03, 2018 8:31 am

I have sold my property and moved into my partner's home.

We want to hold the property on a 60 (him)/40 (me) basis as tenants in common, for which I will invest £216,000. There is no mortgage on the property, which is valued at £650,000.

Will stamp duty be due and, if so, would it be payable on the £216,000 or 40% of the property's value? This is our only property.

Are there any other issues that should be taken into account?

Many thanks.

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

Re: Buying into partner's property

Postby maths » Thu May 03, 2018 3:30 pm

If this is your only interest in a residential property the 3% SDLT charge won't apply but the basic rates will and to the £216,000 figure
ie 2%v x [216,000 - 125,000] = 1,820.

Seaswift
Posts:2
Joined:Thu May 03, 2018 8:08 am

Re: Buying into partner's property

Postby Seaswift » Thu May 03, 2018 8:36 pm

Thank you, maths. That's very useful and much appreciated.

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

Re: Buying into partner's property

Postby maths » Thu May 03, 2018 10:17 pm

Forgot to add that no CGT should arise on the disposal to you on his part assuming he has always lived in the property.

I have assumed you are unmarried co-habitees.


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