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Buying a second property and getting taxed

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I am planning on selling my house and buying another one jointly with my partner, but i have just been told that because she already has her own house, then she will be taxed heavily if we purchase another, about 6k, is there any legal way round this?

Thanks

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I am planning on selling my house and buying another one jointly with my partner, but i have just been told that because she already has her own house, then she will be taxed heavily if we purchase another, about 6k, is there any legal way round this?

Thanks

 

You're talking about second home stamp duty land tax. Which is +3% on top of normal SDLT. There is no legal way round it as far as know, if your partner currently owns an interest in a U.K. property and she buys another she will be liable.

 

If you are moving home and selling your residence and buying a new residence you're exempt and I believe if your partner sells the property in the back ground within a certain time period I believe she will be due a refund on the additional stamp duty.

 

Best bet is to call a conveyancing solicitor for a chat and gain a full understanding.

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Depends how you are buying it, if you have the money yourself then nothing stopping you buying it alone and then adding your partner to the deeds at a later date.

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Depends how you are buying it, if you have the money yourself then nothing stopping you buying it alone and then adding your partner to the deeds at a later date.

 

thanks for the replies guys...

No, i am paying half towards the new house, and my partner was going to pay some cash and take a small mortgage in her name only, and she was hoping to rent her own house out :help:

would it be illegal for her to sell her own house to a member of her family?

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thanks for the replies guys...

No, i am paying half towards the new house, and my partner was going to pay some cash and take a small mortgage in her name only, and she was hoping to rent her own house out :help:

would it be illegal for her to sell her own house to a member of her family?

 

You definitely need to speak to an accountant as you need tax avoidance advice.

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You definitely need to speak to an accountant as you need tax avoidance advice.

 

Thanks Danny, i will tell her

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Thanks Danny, i will tell her

 

No problem, I hope you find a way around it.

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Find the detailed guidance here. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/570876/SDLT_Higher_rates_for_additional_properties.pdf.

Page 14 indicates you pay the higher rate if either of you retain another property. However, if your partner's house is her main residence and the house you buy together becomes her main residence, and she sells her former residence within 36 months, the 3% additional stamp duty can be claimed back at that point. Make sure you keep the paperwork necessary to claim it back within 3 months of the sale.

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Find the detailed guidance here. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/570876/SDLT_Higher_rates_for_additional_properties.pdf.

Page 14 indicates you pay the higher rate if either of you retain another property. However, if your partner's house is her main residence and the house you buy together becomes her main residence, and she sells her former residence within 36 months, the 3% additional stamp duty can be claimed back at that point. Make sure you keep the paperwork necessary to claim it back within 3 months of the sale.

Thanks, thats a good point

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