Stamp Duty Confusion!

[MrsTwentyNine]

Hi all

DH owns a house and we live in it together...I pay some of the bills and registered to vote here etc. I own a house elsewhere that I have let out to renters (permission to let ...not yet converted to buy to let)

Now we both want to buy another house, do we pay the additional stamp duty charge ?

This link suggests we don't as we are married but just wanted to check if it's true!

www.bowlinglaw.co.uk/sdlt-purchasing-a-joint-property-when-one-partner-is-already-a-homeowner/

Thanks in advance!

The link suggests you do, presuming that you are not on the deeds of your DH's house?

Will you be selling either or both of your existing houses?

If at the end of the day you own more properties than your started with, you pay stamp duty.

Yes you will. Even if you dispose of your husbands house, (his main residence) you are not disposing of your main or only residence, so the extra stamp duty is due.
If you and your husband were both on his deeds then you would both be disposing of your main or only residence and therefore the extra charge would mot be due.

You will your solicitor will ask if either of you own another property. We were in this situation last year and paid extra stamp duty, we have spent the last 6 months getting letters from stamp duty specialists to say our solicitor got it wrong - he didn't.

Hi all thanks for your replies!!

@ToBeHere we will be selling DHs current house. Doesn't the link suggest we won't pay the extra as we are married ?

@Sooveritallnow thank you! I think that makes sense. Not sure why the link suggests marriage was the solution !

@Lonecatwithkitten oh that's helpful! Wonder why there is so much confusion as like @cathol said...it should be as straightforward as that

Look at gov.uk and search Stamp duty calculator. It will give you the calculation based in your circumstances.

@Mercurial123 thank you

It's a bit ambiguous as it asks

"Is the property being purchased replacing your main residence?
If your previous main residence has not yet been sold choose "No". "

Technically it is replacing my main residence as my main residence is my DHs current house not the property I'm renting out! So in that sense I shouldn't have to pay the higher rate ?

It’s written to explain how SDLT on the basis that one of you is already a homeowner, not that both of you are. If you’re retaining your property then you’ll pay at the higher rate regardless of which of the two properties you own between you is the one you currently live in.

It refers the your last main residence you owned, and lived in, and didnt dispose of, not the one you currently live in and dont own.

You owned and lived in another property before moving in with your husband that you didnt dispose of so that is the property for you that is relevant, you retained your previously owned main residence.

You can own multiple properties and not fall foul of the SDLT higher rate, but they have to be properties you have either never used as your main residence or ones that have stopped being your main residence as you purchased another property to be your main residence.

So you will pay the extra this time but if you move again after you jointly buy the new property then the current one causing the issue will no longer as it is not the last main residence you owned and lived in.

If they didn't do it like this people could just move into an Airbnb and rent out their main residence and say we'll I didn't live in it at the time I bought a new property.

I don't agree with it, I fell foul in similar circumstances to you in 2016 and it cost an extra £16k in SLDT, but it is what it is sadly.

On this topic, am I right in thinking that if a house is mortgage-free, then adding another party (eg spouse) to the deeds does not create a stamp duty liability? Even if the couple own another rental property together?

Thank you for any input!