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Original poster

Stamp Duty

10 replies

sringinthestep · 22/05/2018 21:55

Wondering if anyone can help me with a stamp duty question.

Situation is dp own a owns a property which he rents out. He also owns one with me, we are separating, Im buying him out, he is being taken off the deeds of this shared property. He is purchasing a new property. After researching stamp duty I can not work out if he will have the larger amount of stamp duty to pay (around £5000), or the lesser amount of around £400. We have used the stamp duty calculator on Gov website, but not sure if him being taken off the deeds is classed as the same as us selling the house.

Can anyone please help?
Thanks

OP posts:
BarbaraofSevillle · 23/05/2018 06:46

I would have thought it would be the larger amount because he owns the rental property that is not affected by this transaction and he is buying a new property, so will still be buying a second property.

Maybe his solicitor can advise definitively?

Alarae · 25/05/2018 23:49

Sounds to me like he is disposing of his main residence and buying a new one.

Normal rates apply.

Lazypuppy · 25/05/2018 23:51

If he is replacing main residence normal rates apply regardless of how many other properties he owns

Jonbb · 25/05/2018 23:54

He isn't liable for the larger amount because he is replacing his main residence.

Jonbb · 25/05/2018 23:56

Providing he replaces his main residence within 3 years of the disposal of his old one

hejg283 · 28/05/2018 19:10

If he owns another property then he is liable for the additional stamp duty even if he is selling his main residence, if he were to sell the rental within 3 years, he could claim the stamp duty back.

foxycleopauper · 30/05/2018 22:11

I'm a conveyancing solicitor - he'll pay normal rate if he's disposing of a main residence and then buying a new one. It doesn't matter if he owns other properties, as long as the one he's buying is replacing his main residence.

Government guidance here:

www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800

Hope this helps!

foxycleopauper · 30/05/2018 22:13

@hejg283 Sorry but all of what you have said is incorrect, the government guidance is quite detailed and gives a number of examples if you want to clarify the rules.

hejg283 · 30/05/2018 22:18

I work within an agency and that is what we are told by conveyancers every time we ask.

user1487194234 · 30/05/2018 22:43

That's very worrying hebja
Agree with PPs Main residence rules mean no extra tax

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