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Where Taxpayers and Advisers Meet

stamp duty - unsure if it applies

atto40
Posts:7
Joined:Wed May 04, 2016 11:53 pm
stamp duty - unsure if it applies

Postby atto40 » Sat Mar 19, 2022 2:02 pm

Hi All

I am in a situation where im not sure if stamp duty applies if I were to purchase a home for myself.

I live with my parents and always have - the house is in their name not mine.

in 2021 - I purchased a property in my name only. I then renovated it and sold it jan 2022 for a profit

During this period I was still living at home while renovating the purchased house. I never set this new home as my primary residence

fast forward to now - im still living at my parents and want to buy a house for around 200k in my own name only

so the question is - am i classed as a first time buyer and will i need to pay any stamp duty on this new house ?

many thanks

bd6759
Posts:4254
Joined:Sat Feb 01, 2014 3:26 pm

Re: stamp duty - unsure if it applies

Postby bd6759 » Sat Mar 19, 2022 3:09 pm

You are not a first time buyer because you have previously owned a dwelling. It does not matter that the dwelling was not your residence: that is irrelevant and not a test.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/759714/Stamp_Duty_Land_Tax_relief_for_first_time_buyers_-_guidance_note.pdf

atto40
Posts:7
Joined:Wed May 04, 2016 11:53 pm

Re: stamp duty - unsure if it applies

Postby atto40 » Thu Mar 24, 2022 6:08 pm

ok thats make sense and thanks for the link.

if he was to add his wife who has never had a house in her name, then how does the cgt calc work?

is the house cost split between them? he would pay cgt on half of the value of the house and the remaining cost would be cgt free etc?

many thanks

bd6759
Posts:4254
Joined:Sat Feb 01, 2014 3:26 pm

Re: stamp duty - unsure if it applies

Postby bd6759 » Fri Mar 25, 2022 12:32 am

What CGT?

And who is “he”?

The original question was about “you” and SDLT.

atto40
Posts:7
Joined:Wed May 04, 2016 11:53 pm

Re: stamp duty - unsure if it applies

Postby atto40 » Sat Mar 26, 2022 1:12 pm

What CGT?

And who is “he”?

The original question was about “you” and SDLT.

I'm sorry for the confusion - let me clarify

I want to buy the house for 200k and had a previous house as stated above which i sold.
I understand based on the HMRC document that I'm no longer a first time buyer and therefore Stamp duty will apply.

however - if I purchase the house with my wife ( she has never owned a house previously), then how is the stamp duty calc?

purchase price 200k
me and my wife joint 50/50 ownership so 100k each
she will not get any stamp duty on her side as she is first time buyer
but what about myself?

hope that clarifies the situation

thanks

bd6759
Posts:4254
Joined:Sat Feb 01, 2014 3:26 pm

Re: stamp duty - unsure if it applies

Postby bd6759 » Sat Mar 26, 2022 5:20 pm

To benefit from 1st time buyer relief, all purchasers need to be first time buyers.


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