Definition of second home?
Discussion
There are many definitions of second homes out there using slightly different wording and aimed at different things (like the mortgage perspective, CGT, council tax etc).
If a person is separated from their spouse and the marital home (whether legally or not), is a house purchase then deemed NOT to be a second home (by mortgage companies, Councils, HMRC) if it is lived in continuously away from the spouse?
Many thanks.
If a person is separated from their spouse and the marital home (whether legally or not), is a house purchase then deemed NOT to be a second home (by mortgage companies, Councils, HMRC) if it is lived in continuously away from the spouse?
Many thanks.
Not sure, but at a guess (useful huh)
which property you have CGT liability for is based on where you actually spend most of your time.
Anything related to mortgages and stamp duty it is based on whose name is on the mortgage/deed. So if you own/mortgag a house you have never sat foot in, you still are liable for second home stamp etc
Hopefully someone with actual knowledge can correct
which property you have CGT liability for is based on where you actually spend most of your time.
Anything related to mortgages and stamp duty it is based on whose name is on the mortgage/deed. So if you own/mortgag a house you have never sat foot in, you still are liable for second home stamp etc
Hopefully someone with actual knowledge can correct
Edited by lizardbrain on Saturday 3rd September 08:47
Our house is in my wife’s name but I live with her full time. I thought if I bought a house myself in my name, that isn’t classed as a second home but it would be a second home according to HMRC rules.
I was looking at buying a small holiday home as a fixer upper but with all this second home council tax increases I’m not going to bother.
I was looking at buying a small holiday home as a fixer upper but with all this second home council tax increases I’m not going to bother.
From sold.co.uk:
Do I Have to Pay the Additional Rate of Stamp Duty if I’m Getting a Divorce and Buying a New Home?
You do not have to pay the additional rate of stamp duty if you are buying a new home after getting divorced, but only if you have a ‘property adjustment order’ in place. This will transfer the original property to your ex-partner, so you can buy a home and avoid paying the stamp duty rate for a second home.
Your divorce solicitor should be able to help you arrange a property adjustment order if required. If you do not have one in place and you buy a second property, you should be able to claim a refund on the additional stamp duty if the marital home is sold within three years.
Do I Have to Pay the Additional Rate of Stamp Duty if I’m Getting a Divorce and Buying a New Home?
You do not have to pay the additional rate of stamp duty if you are buying a new home after getting divorced, but only if you have a ‘property adjustment order’ in place. This will transfer the original property to your ex-partner, so you can buy a home and avoid paying the stamp duty rate for a second home.
Your divorce solicitor should be able to help you arrange a property adjustment order if required. If you do not have one in place and you buy a second property, you should be able to claim a refund on the additional stamp duty if the marital home is sold within three years.
RammyMP said:
Our house is in my wife’s name but I live with her full time. I thought if I bought a house myself in my name, that isn’t classed as a second home but it would be a second home according to HMRC rules.
Similar here. Our house is in my name on the deeds (mortgage long ago paid off before I even met the current Mrs R) but as far as Scot Gov are concerned we are joint owners. When looking to buy another property we get hit for the 2nd home tax if there is an overlap between buying the new place and selling here, even if the new place is purchased solely in Mrs R's name. (You do get 18 months to sell the first property and claim the additional tax back but you've still got to budget for paying it in the 1st place)Gassing Station | Finance | Top of Page | What's New | My Stuff