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Where Taxpayers and Advisers Meet

Am I classed as the owner of a property in France and does 3% SDLT charge apply to me.

9638527410
Posts: 2
Joined: Wed Jan 09, 2019 5:21 pm

Am I classed as the owner of a property in France and does 3% SDLT charge apply to me.

Postby 9638527410 » Wed Jan 09, 2019 5:40 pm

I currently own a 25% share in my UK property (it is shared ownership, with 50% owned by the landlord, and the other 25% by my co-owner).

I am currently buying out my co-owner and I am filling in the documentation for the conveyancer. One of the questions is "do you own a property anywhere else in the world?", with the aim of establishing if I am eligible to pay the additional 3% SDLT.

My mum purchased a property in France around 10 years ago. In 2014, she instructed a notaire to grant her the usufruct of the property ie. she has the right to occupy and collect income from it, I believe known as beneficial ownership, which I assume gives me the bare ownership. I basically have no rights to the property, and full ownership will only pass to me upon her death. I didn't pay any money either.

So my question is, for the purposes of SDLT, am I classed as the owner of the property, or is my mum?

I have searched the internet and this forum high and low, and this forum seems to be the only place I can find a pretty consistent response to questions with similar circumstances.

Many thanks

SDLT Geek
Posts: 165
Joined: Sun Apr 30, 2017 5:45 pm

Re: Am I classed as the owner of a property in France and does 3% SDLT charge apply to me.

Postby SDLT Geek » Thu Jan 10, 2019 10:02 pm

The complications involving usufructs should not matter if you can get around the 3% surcharge another way. Have you lived in the property concerned throughout the last 3 years? If so changes made in the 22.11.2017 Budget should help you. https://www.blakemorgan.co.uk/news-events/blog/sdlt-surcharge-changes/

9638527410
Posts: 2
Joined: Wed Jan 09, 2019 5:21 pm

Re: Am I classed as the owner of a property in France and does 3% SDLT charge apply to me.

Postby 9638527410 » Fri Jan 11, 2019 11:04 am

Hi SDLT geek

I've never lived in the French property. The terms of the usufruct don't give me the right to. It is my mum who has the right to live in the property and collect any rent from it. I have holidayed there but never lived there.

Thanks

SDLT Geek
Posts: 165
Joined: Sun Apr 30, 2017 5:45 pm

Re: Am I classed as the owner of a property in France and does 3% SDLT charge apply to me.

Postby SDLT Geek » Fri Jan 11, 2019 11:15 pm

The point that might help you is if you have lived in the UK property throughout the last three years as explained in the link posted.


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