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I have 3 BTL properties in my name and my wife has none. My wife wants to buy a house for us to live in (we currently rent).Would she have to pay the extra 3% stamp duty tax?
As i understand it she would as she is married to me and I own properties already (albeit not residential) and couples are classed as one. But I heard that if my other properties are not residencial (which they arnt now) then she might not have to pay the extra stamp duty.However we did live in one of them a few years ago so at that time it was residencial but then we rented it out for the last few years. But to simplify, at present I have no residencial properties (only BTL) and she has no properties whatsoever (but she did own one of them outright for a year before she transferred it to me.SO tehcnically she has owned property before but not now.
As I understand it because you own properties. The 2nd buyer would not be able to obtain the FTB SDLT and would have to pay the extra 3%.The thing about SDLT is that its a complicated bit of legislation and you'd be wise to calculate as if you would pay.Though talking to your Conveyancer may be wise.
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As I understand, when buying, married couples are treated as buying jointly even if they are not. So they look at both of you as purchasers together. So if EITHER of you own a property already, that you are keeping, such as a buy to let, then higher rates will be payable on the purchase. When higher rates are due because of the above reason, a person loses the right to First Time Buyer relief, even if they have never bought/owned before.
Other posters please correct me if I am wrong. This conculsion is from my own research. I am not a solicitor/ professional.
you say they are no longer residential
can you expand
Director of Tax Peplows Limited
CTA ACA FCCA
I mean not my residence (home) they do home tenants however
...then for SDLT purposes, the are residential.
I went through the same when we brought our first property to live in after marriage. I already had a property which was rented out after moving back in with my parents (that's another story) and my wife had no property under her name.
We were told by our solicitor that we had to pay stamp duty even though my wife had no property and that this would be our first home to live in. We paid the extra stamp duty and moved into our new house back in October.
You will probably have to pay the extra 3% stamp duty if the house is worth > £40K, one (or more) of your BTLs is worth more than £40K. There is another condition on leasehold but I am assuming the house isn't/
Have a look at https://www.gov.uk/hmrc-internal-manuals/...sdltm09764. Schedule 4ZA is available at https://www.legislation.gov.uk/ukpga/2016...28/enacted