which is putting my house purchase in risk. Everyone appears unsure of exactly what is proper in this situation and we’re both very baffled. Surely the stamp task modification was to stop people purchasing second homes, not from purchasing added interest in the property they currently own? Neither of us can quite believe that he will have to pay over 10,000 in stamp duty to acquire half of your home he already owns and resides in. SS
A: I found it tough to believe too so talked to Treasury which is responsible for the new stamp duty land tax (SDLT) rules. In reaction to the concern as to whether your sweetheart will have to pay the higher rates of SDLT, the Treasury representative said: He will be liable as he owns another property. Where a specific owns other residential property [i.e. the buy-to-let] valued at over 40,000, the greater rates will use to the transfer of a share of property which the purchaser currently part owns.
Bizarrely, if rather of buying you out, your ex-boyfriend and you sold the property and he purchased a brand-new home, he wouldn’t need to pay the higher rates of SDLT on his brand-new home even though he has a buy-to-let property. I put this scenario to the Treasury representative and he said: If he is selling his main house and buying a new one he will not be accountable [to the greater rates of SDLT].
The representative likewise addressed a question from a few other readers who needed to know if they would be responsible for the higher rates of SDLT just on the 50% share of the property they are purchasing collectively with their son. Unfortunately, that’s not the case and because the parents currently own property, the greater rates will apply to the whole deal rate.