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Where Taxpayers and Advisers Meet

Stamp duty implication when Father and son buying property

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm
Re: Stamp duty implication when Father and son buying property

Postby maths » Thu Apr 15, 2021 9:24 pm

Agree with SDLTGeek.

However, I had assumed/got the impression that although still married you are not (for tax purposes) living with your wife (possibly en route to divorce?). Living under the same roof may still not constitute living together.

samboston
Posts:21
Joined:Wed Aug 06, 2008 3:47 pm

Re: Stamp duty implication when Father and son buying property

Postby samboston » Mon Apr 19, 2021 2:56 pm

you and your wife being “separated in circumstances likely to be permanent”.

We currently don't have any plans to be separated permanently.
So looks like the 3% surcharge will apply then.

So if my wife later sold her house and moved in with us, can this extra stamp duty (380K x 0.03= £11400) be claimed back?

Thanks

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

Re: Stamp duty implication when Father and son buying property

Postby maths » Mon Apr 19, 2021 4:11 pm

Based on your posts you are for tax purposes married and living together.

The purchase by you and your son of the new residence is in principle subject to the 3% charge.

However, if wife sold her property prior to you/son buying the new residence then the 3% charge would not apply.

If wife does not sell her property prior to your/son purchase the 3% charge applies but would be refundable if within 3 years of you/son completing your purchase the wife then sold hers.

SDLT Geek is the inter-galactic expert on SDLT and will no doubt comment on my view.

SDLT Geek
Posts:232
Joined:Sun Apr 30, 2017 5:45 pm

Re: Stamp duty implication when Father and son buying property

Postby SDLT Geek » Tue Apr 20, 2021 10:25 pm

There is a problem with qualifying for a refund if the wife sells her home later. This is that we are told the wife is not to live in the new property. That means the conditions for the replacement exception will not be met, even if she sells.

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

Re: Stamp duty implication when Father and son buying property

Postby maths » Wed Apr 21, 2021 2:14 pm

SDLT Geek

Bit poster says:

"So if my wife later sold her house and moved in with us"

samboston
Posts:21
Joined:Wed Aug 06, 2008 3:47 pm

Re: Stamp duty implication when Father and son buying property

Postby samboston » Thu Apr 22, 2021 1:02 pm

"There is a problem with qualifying for a refund if the wife sells her home later. This is that we are told the wife is not to live in the new property. That means the conditions for the replacement exception will not be met, even if she sells."

My wife would sell her house and move in with us, and pay down some of our mortgage.
Does this (and anything) have to be stated when we are buying the house?

Do any special arrangements need to be made when we purchase, in order to qualify for the refund?

SDLT Geek
Posts:232
Joined:Sun Apr 30, 2017 5:45 pm

Re: Stamp duty implication when Father and son buying property

Postby SDLT Geek » Sun Apr 25, 2021 4:11 pm

The refund could only be due if the wife, at the time of the purchase of the new property, has an intention to live in it as her only or main residence. It does not help for that intention to be formed later.

samboston
Posts:21
Joined:Wed Aug 06, 2008 3:47 pm

Re: Stamp duty implication when Father and son buying property

Postby samboston » Tue Apr 27, 2021 1:14 pm

"has an intention to live in it as her only or main residence."

Yes, her intention is to sell her only house and live with us.
Ideally, we would like to sell her property and buy the next property simultaneously.
However, the stamp duty deadline means it may not be possible to do that.

samboston
Posts:21
Joined:Wed Aug 06, 2008 3:47 pm

Re: Stamp duty implication when Father and son buying property

Postby samboston » Sun May 16, 2021 2:09 pm

"It does not help for that intention to be formed later."

How do we state or make it clear now that was our intention all along?
That is, that the my wife will sell her house and then move in with us, and therefore make a refund claim for the extra stamp duty paid.


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