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Where Taxpayers and Advisers Meet

Extra 3% SDLT - Is this a way to legally reduce it?

maths
Posts: 7561
Joined: Wed Aug 06, 2008 3:25 pm

Re: Extra 3% SDLT - Is this a way to legally reduce it?

Postby maths » Sat Apr 01, 2017 9:25 pm

main home in husband's sole name. Husband buys new main residence - pays extra SDLT
But there wouldn't be the 3% charge?

someone
Posts: 383
Joined: Mon Feb 13, 2017 10:09 am

Re: Extra 3% SDLT - Is this a way to legally reduce it?

Postby someone » Sat Apr 01, 2017 9:54 pm

He doesn't sell previous main home.

maths
Posts: 7561
Joined: Wed Aug 06, 2008 3:25 pm

Re: Extra 3% SDLT - Is this a way to legally reduce it?

Postby maths » Sat Apr 01, 2017 10:14 pm

Apologies, misread.

No problem with the suggestion.

Or husband could have given home to wife and then bought in own name new property with no 3% payable and no need to reclaim.

someone
Posts: 383
Joined: Mon Feb 13, 2017 10:09 am

Re: Extra 3% SDLT - Is this a way to legally reduce it?

Postby someone » Mon Apr 03, 2017 7:43 am

Hi Maths,

Thanks for all your insight on this. I've read and reread 6(b) and I can now understand your interpretation. I now agree that 6(c) is likely to be nickgo61's problem.

I'm also excited by your agreement with my 3 (7) "loophole". That does seem to indicate that we might be able to reclaim the 3% SDLT we expect to pay soon. (We have three years to investigate further)

Not sure I agree with you that husband and wife can transfer the current main home property before the 3% transaction. I'm assuming that the "current main home" will stay as "current main home" until the "new main home" transaction occurs and therefore (6) (d) appears to prevent a transfer to a spouse. Only if H&W can effect the transfer and move out until "new main transaction" occurs can the upfront payment of the 3% SDLT be avoided.

Of course, transferring "current main home" to spouse after "new main home" is purchased will cause the loss of any PPR on current main home. Owning the properties 99%/1% rather than 100%/0% might be a way to avoid this (doesn't work for me) as I think the 1% won't count as a major interest.

Ian McTernan CTA
Posts: 1232
Joined: Wed Aug 06, 2008 3:02 pm
Location: Bedford
Contact:

Re: Extra 3% SDLT - Is this a way to legally reduce it?

Postby Ian McTernan CTA » Wed May 10, 2017 10:25 am

Reading the replies to this thread reminds me of why I always use a SDLT specialist for most of the transactions I get involved in- or a firm of solicitors deal with the SDLT aspect (so it's their PI and not mine!).

It's very easy to get it wrong, and the sums involved tend to be quite large.

When in doubt, consult an expert! (NB I am not a SDLT expert, although I do specialise in property. Goes to show how complex property can be).
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com


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