Buying a 2nd property - 3% surcharge?
Discussion
A friend of mine is married and lives in a house which is 100% in his wife's name.
They would like to move into another house and let out the current property.
The new property (and mortgage) will be 100% in the husband's name.
Will he have to pay the 3% surcharge for having a second property?
Thanks in advance
They would like to move into another house and let out the current property.
The new property (and mortgage) will be 100% in the husband's name.
Will he have to pay the 3% surcharge for having a second property?
Thanks in advance
Countdown said:
swatches said:
Depending on the cost of the property...
Could be worth getting a divorce and then spending the 3% saved on the remarriage party.
Hypothetically - what happens if they're living apart? Do you have to provide evidence of marital discord to the conveyancing solicitor? Could be worth getting a divorce and then spending the 3% saved on the remarriage party.
lol to providing evidience of marital discord.......
Derek Chevalier said:
Out of interest do you know if they are aware of the impending tax changes?
I'd say that will be a no, given that they're too ill informed or thick to understand even the basic rules on the 3% sdlt issue, the chances of them being aware of the impending tax changes, let alone the many regulations that come with being a commercial landlord will be zero.Derek Chevalier said:
Countdown said:
and let out the current property.
Thanks in advance
Out of interest do you know if they are aware of the impending tax changes?Thanks in advance
If and when they go down that road.
mike74 said:
I'd say that will be a no, given that they're too ill informed or thick to understand even the basic rules on the 3% sdlt issue, the chances of them being aware of the impending tax changes, let alone the many regulations that come with being a commercial landlord will be zero.
You sound like charm personified.Countdown said:
Thanks for pointing that out Indeed they are. But as the house is mortgage free there would be no interest relief to claim. In any case it's all in the wife's name and she has plenty of unused personal allowance to avoid having to pay tax.
If and when they go down that road.
They still have to pay income tax in a 50/50 share though as they're married unless they sort out an alternative solution. You can register a different beneficial interest with HMRC I believe.If and when they go down that road.
MrChips said:
They still have to pay income tax in a 50/50 share though as they're married unless they sort out an alternative solution. You can register a different beneficial interest with HMRC I believe.
Beneficial interest declaration only needs to be made if it's in joint names. The current property is wholly in his wife's name.Countdown said:
Beneficial interest declaration only needs to be made if it's in joint names. The current property is wholly in his wife's name.
Ok that's different from what HMRC have told me on more than one occasion. They were clear that beneficial interest in a property is classed as 50/50 when married, no matter who is named on the deeds. This ties in with friends experiences of divorce MrChips said:
Ok that's different from what HMRC have told me on more than one occasion. They were clear that beneficial interest in a property is classed as 50/50 when married, no matter who is named on the deeds. This ties in with friends experiences of divorce
Odd Their website seems to suggest otherwise.https://www.gov.uk/government/publications/income-...
It's not unknown for HMRC to give duff info tbh. Anyway it's a moot point at the moment.
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