Stamp duty.... FTB relief

[Housequestuns]

My partner (not married) and I are looking to buy a property to live in. He is a FTB and I already own a property which I'm not selling (won't go into the specific reasons why). I know if we buy together then he won't be classed as a FTB either for stamp duty purposes and we have to pay the additional 3% on a second home. Is it feasible for him to buy the property in his own name and transfer 50% to me further down the line? If so when would be an appropriate timeframe? He can just about afford the house himself without me contributing anything (deposit or mortgage affordability-wise). I don't know if this can be considered legally or morally dodgy so would obviously not want to do this if that is the case.

Surely if he buys the house with the intention of transferring 50% of it to you in the future so that you can avoid stamp duty, this would be tax fraud?
Also, if you take on shared liability for the mortgage when the transfer is made, you would be liable to pay stamp duty on the amount transferred.

Can be done legally as long as you are not taking a beneficial interest in the property (by contributing towards the cost) then you can transfer a week later, if you want. As long as you aren't making a payment to him (which will be chargeable consideration) or taking on half a mortgage (which is again chargeable consideration and charged at 3% surcharge remember) you should be ok.

legally its a grey area but if it's his property its his property and you're not married so not counted as one entity (we had a similar issue but were married so just ended up selling the original property). But you will have to pay the stamp duty on it when he transfers it and you'll probably have to remortgage as well

I am not sure he will be able to transfer you 50% without that attracting some sort of tax on it, as you are not married.

I think asset transfers between spouses are tax free.

So I think the system has it covered. Although I am not 100% sure on this.

Thanks all for replies. I agree that I'll have to pay stamp duty + surcharge when he transfers 50% to me but won't it be on 50% of the value of the house? As opposed to on 100% if we bought together from the outset. So still a saving? Since we would pay SD with FTB discount on 100% of the price at purchase, then SD with surcharge on 50% of the price later on.

Purely playing devil's advocate here, but how would it be if OP's partner buys the house exempt from stamp duty, and then they get married but don't bother to put her on the title or the mortgage?

Also, just a side question, but for the purposes of stamp duty liability, does a FTB have to be literally buying their first property ever, or is it sufficient that they own no other property at the time of the purchase?

@DepartureLounge first property ever.

I believe even owning an overseas home means you don't get British FTB status.

And, just because I like to mention it now and then to warn people, it's currently 425k for a total exemption, but from 31st March 2025, it will revert to 300k.

Thank you.

I'm probably biased but I think that should change, given how tough it is to get back on the ladder once you come off for whatever reason.

@DepartureLounge for sure. Our government loves a one size fits all policy because means testing is something they can only be arsed with when it comes to taking money off people, not getting it from them.

My now DH bought our current home in just his name as I still had a property. I had to sign something for his mortgage company basically agreeing I had no claim over the property. I then sold my house and when he was due to remortgage it was switched to joint names. I was only liable for stamp duty on the value of my half, which as it happened was zero anyway. It makes sense to me to let him buy as a ftb and then switch to joint later.