New SDLT Rules when partner does not own a property?

by Readers Question

9:21 AM, 8th April 2016
About 5 years ago

New SDLT Rules when partner does not own a property?

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New SDLT Rules when partner does not own a property?

I have a question about the new SDLT rules, and I am hoping someone is able to assist:

For inheritance purposes (7 year rule), a few years ago, my brother and I were added to the deeds of 3 x properties owned by my parents. Those three properties are not my main residence (they are in the Midlands, and I rent in London for work). These properties are rented out, and I do not receive any of the income from those properties.

I am now looking to buy a home with my girlfriend (not currently living together) – She does not own a share of any property. I do not own more than 50% of any of the properties (actually, I don’t own any of them, but I am on the deeds of them), and I do not receive an income from those properties. Would I be liable for the additional 3% stamp duty?

Any help or advice would be greatly appreciated.

Thanks

Luther

Stamp


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Comments

Michael Barnes

11:15 AM, 13th April 2016
About 5 years ago

Reply to the comment left by "Michael Barnes" at "10/04/2016 - 16:11":

Seems I was wrong about the value of existing properties and Patrick was correct.
.
The finance bill (http://www.publications.parliament.uk/pa/bills/cbill/2015-2016/0155/cbill_2015-20160155_en_18.htm#pt8-pb1-l1g117), page 166 lines 15-21 say:


(4)Condition C is that at the end of the day that is the effective date of
the transaction—
(a) the purchaser has a major interest in a dwelling other than the
purchased dwelling,
(b) that interest has a market value of £40,000 or more, and
(c) that interest is not reversionary on a lease which has an
unexpired term of more than 21 years.

This appears to me to say that one can have an interest of less than £40,000 in each of many properties without it triggering the additional SDLT.

If that interpretation is correct, then it seems that additional SDLT can be avoided by owning BTL properties jointly, with everyone having less than £40,000 interest in each.

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