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Where Taxpayers and Advisers Meet

Does extra 3% of stamp duty apply when having bare ownership of a property abroad?

morris69
Posts:1
Joined:Fri Jun 10, 2016 10:48 am
Does extra 3% of stamp duty apply when having bare ownership of a property abroad?

Postby morris69 » Fri Jun 10, 2016 10:54 am

My question is about the recent changes in the SDLT (Stamp Duty) rules.

I wish to purchase a residential property in the UK which will be my first main residence in this country.

However, I am an EU national and my parents’ home in my country of origin is technically also in my name. I use the term ‘technically’
as I only have bare ownership of that property and the full beneficial is my mother. Unlike me, she has the permanent right to live in it, and rent it, and keep any profits arising from the use of the property.

These rights and full ownership to the property will pass to me only after her death. Does the fact that my property abroad is not really mine to use or benefit from, mean that I don’t have to pay the extra stamp duty when I purchase my first home in the UK?

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

Re: Does extra 3% of stamp duty apply when having bare ownership of a property abroad?

Postby maths » Thu Jun 16, 2016 4:40 pm

Does the fact that my property abroad is not really mine to use or benefit from, mean that I don’t have to pay the extra stamp duty when I purchase my first home in the UK?
Correct; no additional 3%.

propertywire
Posts:1
Joined:Thu Feb 02, 2017 4:12 pm

Re: Does extra 3% of stamp duty apply when having bare ownership of a property abroad?

Postby propertywire » Thu Feb 02, 2017 4:17 pm

Hi moris69, when you say "technically" what do you mean?
BTW have you completed the property purchase?

I'm in similar situation, and keen to understand it in details.

Thanks

khalsa87
Posts:3
Joined:Tue Feb 14, 2017 11:26 am

Re: Does extra 3% of stamp duty apply when having bare ownership of a property abroad?

Postby khalsa87 » Tue Feb 14, 2017 11:39 am

Hi - did you ever get a response on this? I'm also in a similar situation.

bgl83
Posts:1
Joined:Fri Jun 23, 2017 9:15 am

Re: Does extra 3% of stamp duty apply when having bare ownership of a property abroad?

Postby bgl83 » Fri Jun 23, 2017 9:16 am

Hi - did you ever get a response on this? I'm also in a similar situation.
Has anyone ever found the answer to this question?
Thanks!

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

Re: Does extra 3% of stamp duty apply when having bare ownership of a property abroad?

Postby SDLT Geek » Fri Jun 23, 2017 9:16 pm

There are two cases relevant here where another property owned does not "count against" the person in whose name the property is.

1. Where the property is held as a "bare trustee" for another person. So that other person has the full right to the property. They could call for a tranfer of it. That does not sound like the case for the overseas property mentioned in the first post in this thread.

2. Where another person has a right to the income from the property or a right to occupy it for life. In English law this could be under a life interest trust. Under other juridictions it could be a usufruct. This sounds more like the first post.

In these two cases the property "counts against" the beneficiary rather than the registered proprietor for SDLT surcharge purposes.


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