Stamp duty – First property in joint names?

Stamp duty – First property in joint names?

6:39 AM, 15th July 2019, About 3 years ago 3

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We currently live in a home worth £95000 and we intend to rent this out and purchase a home for £165000.

We don’t own any other property. Does anyone know how much Stamp Duty we have to pay on our new home as we are getting conflicting answers?

The new mortgage will be the first time my wife and I are named on the same mortgage as our first property was in my name only?

Many Thanks


Editors Notes:

Higher rates for additional properties

You’ll usually have to pay 3% on top of the normal SDLT rates if buying a new residential property means you’ll own more than one.

Use the SDLT calculator to work out how much tax you’ll pay.


You must pay the higher SDLT rates when you buy a residential property (or a part of one) for £40,000 or more, if all the following apply:

  • it will not be the only residential property worth £40,000 or more that you own (or part own) anywhere in the world
  • you have not sold or given away your previous main home
  • no one else has a lease on it which has more than 21 years left to run

Who the higher rates apply to

You may have to pay the higher rates even if you intend to live in the property you’re buying (and regardless of whether or not you already own a residential property).

This is because the rules do not apply only to you (the buyer), but also to anyone you’re married to or buying with.

If you’re married or in a civil partnership

The rules apply to you both as if you were buying the property together, even if you’re not.

If either of you individually have to pay the higher rates, you must pay the higher rates for the transaction as a whole (unless you’re permanently separated).



Neil Patterson View Profile

6:50 AM, 15th July 2019, About 3 years ago

Hi Stuart,

Please see my HMRC guaidance note above that includes the Stamp Duty calculator link.

Also the handy flow chart that shows when you pay the 3% surcharge for a second home. The only update has bben that you now have 3 years to claim a refund if you sell your main residence after replacing it with a new main residence.

In your circumstance I am sorry to say you will be considered as buying a second home and have to pay the 3% surcharge. However this could be refunded if you decide to sell the original property and buy no other in the next 3 years.

I hope that helps.

Neil Patterson View Profile

6:55 AM, 15th July 2019, About 3 years ago

PS Don't forget to get consent to let from your existing mortgage lender.

Jessie Jones View Profile

11:13 AM, 21st July 2019, About 3 years ago

I speak here with precious little knowledge, but I would be interested in knowing how the situation might change if the first property was transferred into a limited company.
Clearly there might be some Capital Gains Tax to be paid upon the transfer of the first property, but after 2 people's allowances that might be minimal here.
According to the SDLT calculator, it suggests that if the fist property is bought by way of a company, the SDLT on that house would be £2850, and the SDLT on the new property would be £800, giving a total of £3650
However, under the circumstances that Stuart describes, the SDLT on the purchase of the second house in their joint names would be £5750.
Given some of the advantages of having a second property in a limited company, this appears to me to be the obvious route, but I would be please to hear other people's opinions.

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