Stamp duty help!

[RS6 see you]

Hi we need some advice re stamp duty thanks in advance

My girlfriend (owns a flat that she lives in) and I own (a house that I live in ) We have a property each.

We have NO other properties or shares in any properties around the world.

I have just sold my house and it will exchange and complete next Friday!

We intend to buy a property together and keep her flat.

Do we need to pay the extra stamp duty on the new joint purchase?

[anonymous-user]

RS6 see you said:

Hi we need some advice re stamp duty thanks in advance

My girlfriend (owns a flat that she lives in) and I own (a house that I live in ) We have a property each.

We have NO other properties or shares in any properties around the world.

I have just sold my house and it will exchange and complete next Friday!

We intend to buy a property together and keep her flat.

Do we need to pay the extra stamp duty on the new joint purchase?

Yes, because it will be a second property for her.

[RS6 see you]

Thanks for the prompt response.

Would it make a difference if we were married?

[anonymous-user]

RS6 see you said:

Thanks for the prompt response.

Would it make a difference if we were married?

It would not. The only way around this is for you to each own one of the properties as you do now.

[essIII]

RS6 see you said:

Thanks for the prompt response.

Would it make a difference if we were married?

Nope

[Plate spinner]

RS6 see you said:

Thanks for the prompt response.

Would it make a difference if we were married?

No.

Even if it did, you'd have limited time to get hitched before Friday

[TA14]

essIII said:

RS6 see you said:

Thanks for the prompt response.

Would it make a difference if we were married?

Nope

I can just see the adverts: "single and need to avoid £30K in stamp duty land tax? Our quickie marriage and divorce service for £2K includes a choice of bride/groom for two months, extras available..."

[RS6 see you]

Is there a way to avoid paying the extra stamp duty?

[sonnenschein3000]

TA14 said:

I can just see the adverts: "single and need to avoid £30K in stamp duty land tax? Our quickie marriage and divorce service for £2K includes a choice of bride/groom for two months, extras available..."

Where can I find this service? Not that i'm buying a house, just want some fun for a couple of months

[anonymous-user]

RS6 see you said:

Is there a way to avoid paying the extra stamp duty?

Well there may be through some complex trust/ltd company/offshore/not sure if totally legit type arrangement where you don't actually own the house. But I'd imagine setting that up will be more expensive than the sdlt anyway

[Plate spinner]

RS6 see you said:

Is there a way to avoid paying the extra stamp duty?

Talk to an accountant

[The jiffle king]

To avoid the duty, I think you would have to sell both flats. An expert will be along soon, but I think you can claim back the duty paid if you sell both within 18 months?

[ClaphamGT3]

Plate spinner said:

RS6 see you said:

Is there a way to avoid paying the extra stamp duty?

Talk to an accountant

Very much this. Its an unfair and iniquitous tax but quite hard to avoid

[kambites]

Whether or not it's "unfair", it sounds like it's achieving it's aims - making it more expensive for a "family unit" to own multiple properties.

[RS6 see you]

Maybe the government should have looked at it from a different perspective, I get why they did it but there should be some form of relief for low rate tax payers, our situation isn't an uncommon one.

[S6PNJ]

RS6 see you said:

Is there a way to avoid paying the extra stamp duty?

Buy it on your own so your GF is not on the mortgage/deeds?

[ClaphamGT3]

I sharevyour thinking OP - you and your girlfriend are a classic example of people who are being penalised for prudence in order to appease the feckless

[JulianPH]

RS6 see you said:

Is there a way to avoid paying the extra stamp duty?

Yes, two. You either buy the new house in your name only, or she sells her flat.

TBH Both of these are far more sensible options that you selling your property and using the proceeds towards paying for a jointly owned property whilst she keeps her property.

Obviously I have no idea if she is making an equal contribution to the joint property (without having to sell her property) but it is important that you recognise that once the equity from your property is in joint names with her you lose (typically) half of that equity, whilst she gains half of it and keeps 100% of the equity in her property.

[TeaNoSugar]

I'm in a similar situation as the OP. Our house sale and purchase is going through now. Mortgage advisor told me that the only way to avoid the multi-property stamp duty was if we both sold our other houses, but he said we have 3yrs from the time we complete this house purchase to sell the other houses and claim the stamp duty rebate. I'm not sure what to do yet but just wanted to make the point about the rebate timescale. Our mortgage advisor said 3yrs; I was wondering if I've been misinformed??

[Sarnie]

TeaNoSugar said:

I'm in a similar situation as the OP. Our house sale and purchase is going through now. Mortgage advisor told me that the only way to avoid the multi-property stamp duty was if we both sold our other houses, but he said we have 3yrs from the time we complete this house purchase to sell the other houses and claim the stamp duty rebate. I'm not sure what to do yet but just wanted to make the point about the rebate timescale. Our mortgage advisor said 3yrs; I was wondering if I've been misinformed??

3 years............

https://www.gov.uk/government/publications/stamp-d...