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Where Taxpayers and Advisers Meet

Stamp duty

musty
Posts: 9
Joined: Wed Aug 06, 2008 4:00 pm

Stamp duty

Postby musty » Thu Aug 01, 2019 5:28 pm

My daughter is shortly to be married and I planned to provide the funds for the couple to purchase a family home.
Her prospective husband already owns a quarter share in his parent’s holiday home and the quarter share is valued in excess of the permitted £40,000.
This therefore precludes him from claiming first time buyers allowance and would also expose him to the 3% stamp duty surcharge
My daughter has never purchased or previously owned any property.
It has been suggested that if prior to the marriage my daughter should purchase a property with my assistance, she would be therefore be entitled to both the first time buyers allowance and also escape any stamp duty surcharge.
If following the marriage she decides to then gift half of her property to her spouse, Is there any impediment for her to do so, bearing in mind the exemption of taxes between spouses.

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

Re: Stamp duty

Postby someone » Fri Aug 02, 2019 9:40 am

The 'exemption' is CGT, not taxes.

There's no fundamental impediment but:

If her husband to be helps with the purchase (by for example gifting her half the deposit) then this would probably be seen as tax evasion. If she can buy it without his help then it's probably safe.

If there is a mortgage then the gift of half the house would incur SDLT (but not the 3% surcharge) on half the mortgage as deemed consideration (and half of any loan you make to her to help)


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