Higher rate/refund on sale of rental

[Strokeside]

<t>Mr B and Miss C each own houses. They have lived together in Mr B house for 5 years, during that time Miss C lets her house. Both mortgaged. Miss C house was originally her main residence. <br/>
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Mr B house will be sold very soon and they will purchase jointly owned new home. Miss C will sell her rental subsequently within a few months. Sale in advance of purchase not possible. <br/>
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Solicitor advises higher rate applies on purchase (agreed) but says refund will be made on sale of Miss C rental. Is that right? Surely that sale is not of a main residence and so fails Condition D so that the higher rate is permanent? (Examples 2 of Sdlt HMRC manual) What am I missing? <br/>
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Solicitor suggests mr B buys new house solely (no higher rate ) and adds Miss C to deeds later. Surely that is an sdlt event at standard rate on value transferred? <br/>
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Your thoughts gratefully received. (Tax savvy but not sdlt skilled!) t>

[bd6759]

Solicitor is wrong regarding refund. The rented house was not the main residence within 3 years of the relevant date. Is solicitor aware she hasn’t lived there for 5 years?

Transfer to joint names might mean a new joint mortgage, or assumption of debt, and further SDLT.