Higher Rates for SDLT Additional PropertiesJul. 18, 2017, 9:24am
The higher rates of SDLT and the rules as to when they apply can be confusing. Take the following example that we recently encountered…
“My girlfriend and I are about to buy our first home together and we are concerned that we may have to pay the higher rates for stamp duty. My girlfriend will sell her flat but I’ll keep my buy to let which I will continue to let. Will we have to pay the higher rates on the half that I am purchasing or on the whole property?”
The higher rates will apply to the total price paid for the property. The reason for this is that you will own an interest in an additional residential property and there are special rules for joint purchasers.
For joint purchasers, the higher rates will apply if either purchaser already owns another residential property and they are not replacing their main residence. In the case of joint owners, we look at each joint buyer separately and ask whether the 3% surcharge would apply to a purchase by that person. If the 3% would apply to either party, then the 3% surcharge applies to the whole of the transaction.
If you have a tax query, why not contact us to discuss it. Our team has a wealth of experience and would love to hear from you.
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