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Where Taxpayers and Advisers Meet

Legal Charge = ownership for SDLT purposes?

SwedenCL
Posts:4
Joined:Fri Jan 19, 2018 1:56 pm
Legal Charge = ownership for SDLT purposes?

Postby SwedenCL » Fri Jan 19, 2018 2:01 pm

Hi,

I am going trough a divorce and have agreed to help my ex buy a new house. She will hold title to the house and I will have a legal charge against 60% of it. If I end up buying a home for myself while I hold that charge, will I be subject to the 3% additional SDLT or is the charge not considered ownership and thus my own purchase won't be considered a second property?

Thank you in advance.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Legal Charge = ownership for SDLT purposes?

Postby bd6759 » Fri Jan 19, 2018 6:50 pm

If the charge gives you a beneficial interest in 60% of the property, that would be a major interest, leaving you liable to the addtional 3%.

However you will not liable if you replace a residecne. If you currently own the house you live in, you will not be liable to the 3% if you sell that and buy another residence

SwedenCL
Posts:4
Joined:Fri Jan 19, 2018 1:56 pm

Re: Legal Charge = ownership for SDLT purposes?

Postby SwedenCL » Sat Jan 20, 2018 2:41 pm

Thank you for your response!


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