Stamp Duty question.

[Robin Hood]

Hopefully we have an expert on the forum who can answer my query.

One of my kids has recently moved in with their partner.
She has rented out her house (she has changed her mortgage to a buy to let mortgage)
Her partner has his own house too.

They have decided to sell his house and buy a larger property between them. She will keep her house, as a source of income and as a future investment for them.
They have a joint mortgage for the new property, and have sold his house. They need a joint mortgage to afford the house.

The question - will they have to pay the extra stamp duty for this new second home, or will they be exempt from the surcharge on the basis that they are replacing a main residence with their new purchase.

It doesn't look straightforward. Is there a way to avoid the surcharge.

 

[fundy]

GB72 the man to ask on here

 

[robinthehood]

I'm moving home and the land tax declaration very much seemed like I'd have to pay higher rate if I owned another property that i wasn't selling as part of the move.

 

[GB72]

Higher level stamp duty as one of them owns a house. If they bought in just his name it would be at the standard rate.

 

[Robin Hood]

Higher level stamp duty as one of them owns a house. If they bought in just his name it would be at the standard rate.

Can I throw this into the mix......
My daughters house (that she now rents out) is a leasehold property with 97 years left.
Does that change things.
HMRC website looks likely that this is the case. Let's hope so.

 

[GB72]

Can I throw this into the mix......
My daughters house (that she now rents out) is a leasehold property with 97 years left.
Does that change things.
HMRC website looks likely that this is the case. Let's hope so.

Nope no difference in the rules, same if property is freehold or leasehold

 

[Robin Hood]

Nope no difference in the rules, same if property is freehold or leasehold

Thanks GB72
Looks like they are going to have to bite the bullet - it will be expensive ?