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stamp duty

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My wife is not on my mortgage I have been told that to put her on she would have to pay stamp duty. She has a house (her old house ) that she rents out not to make money just because we couldn't sell…
mackey24680 Avatar
5m, 2w agoPosted 5 months, 2 weeks ago
My wife is not on my mortgage I have been told that to put her on she would have to pay stamp duty. She has a house (her old house ) that she rents out not to make money just because we couldn't sell it. So she is classed as having a second home which means the extra 3% stamp duty. So I decided not to put her on the mortgage and leave it at that. Now though we are selling up and wanted to buy a new home. So we would be applying for a new larger mortgage together . I my self as I understand will not be liable for the additional home extra stamp duty as I'm replacing my home with another but my question is will she have to pay the additional stamp duty as she technically isn't on my mortgage even though we have kids together and has lived with me for & years. Any comments welcome
mackey24680 Avatar
5m, 2w agoPosted 5 months, 2 weeks ago
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#1
The most important question here is how much is the new house? You will both be liable to pay stamp duty if it exceeds £125k (albeit at the higher rate, as this is her second home). See here for info: https://www.moneyadviceservice.org.uk/en/tools/house-buying/stamp-duty-calculator
Stamp duty is paid on the purchase of your new house, so it matters not if she has not been on your existing mortgage - it is the new joint mortgage that will cause the complications.
You may be better off keeping the house only in your name if you can afford the mortgage alone and just update your wills.


Edited By: Mermoo on Sep 06, 2016 09:18
#2
The new house is £300000 so I would have to put her on the mortgage so I could borrow enough. I don't mind paying the actual stamp duty of around £6000 but it's the second home extra 3% that I'm worried about
#3
You will need to pay the higher rate stamp duty as will be classed as her second home
#4
yes if you have a another property when you purchase your new home, though you have 3 years to claim it back
#5
mackey24680
The new house is £300000 so I would have to put her on the mortgage so I could borrow enough. I don't mind paying the actual stamp duty of around £6000 but it's the second home extra 3% that I'm worried about

It sounds like it's time to sell her second home then...
#6
is she selling her existing property, if not, she is in the same position as present, she will have a second property.

Edited By: rcwmeg on Sep 06, 2016 09:27
#7
rcwmeg
is she selling her existing property, if not, she is in the same position as present, she will have a second property.


Is that because it's classed as her main residence because she isn't on my mortgage even though she has lived with me for 8 years ?
#8
So say my stamp duty in my new house is £6000 she would owe another £9000 on top of that?
#9
pb22
yes if you have a another property when you purchase your new home, though you have 3 years to claim it back


3 years to claim what back?
#10
Mermoo
mackey24680
The new house is £300000 so I would have to put her on the mortgage so I could borrow enough. I don't mind paying the actual stamp duty of around £6000 but it's the second home extra 3% that I'm worried about

It sounds like it's time to sell her second home then...


Would if I could
#11
mackey24680
Mermoo
mackey24680
The new house is £300000 so I would have to put her on the mortgage so I could borrow enough. I don't mind paying the actual stamp duty of around £6000 but it's the second home extra 3% that I'm worried about
It sounds like it's time to sell her second home then...
Would if I could

You can sell everything at the right price...
#12
Might sell the wife
#13
as your wife will have a second home if she sells it within 3 years then you can claim back the 3% additional stamp duty, the form states even if you have a house any ware in the world or a part share of a property then the additional ta duty still applies
#14
pb22
as your wife will have a second home if she sells it within 3 years then you can claim back the 3% additional stamp duty, the form states even if you have a house any ware in the world or a part share of a property then the additional ta duty still applies


Ah ok good to know
#15
My understanding (but understand I have not done this or any extensive research) is that if it is you main residence and you are disposing (or selling) you main residence the the extra is not payable.
If she has been living with you as her main residence then she will have been on the voting register and listed on your council tax as resident? If so I can't see much of an issue. Also having a copy of the tenancy agreement for you second home and a letter from your agent stating it has been rented out between the following dates. I'm guessing you will have paperwork for paid tax on the income as further evidence.

But best to seek professional advice before starting the ball rolling. Good Luck. :)
#16
GAVINLEWISHUKD
My understanding (but understand I have not done this or any extensive research) is that if it is you main residence and you are disposing (or selling) you main residence the the extra is not payable.
If she has been living with you as her main residence then she will have been on the voting register and listed on your council tax as resident? If so I can't see much of an issue. Also having a copy of the tenancy agreement for you second home and a letter from your agent stating it has been rented out between the following dates. I'm guessing you will have paperwork for paid tax on the income as further evidence.

But best to seek professional advice before starting the ball rolling. Good Luck. :)


Yeah it's all official I pay tax ect
#17
mackey24680
GAVINLEWISHUKD
My understanding (but understand I have not done this or any extensive research) is that if it is you main residence and you are disposing (or selling) you main residence the the extra is not payable.
If she has been living with you as her main residence then she will have been on the voting register and listed on your council tax as resident? If so I can't see much of an issue. Also having a copy of the tenancy agreement for you second home and a letter from your agent stating it has been rented out between the following dates. I'm guessing you will have paperwork for paid tax on the income as further evidence.
But best to seek professional advice before starting the ball rolling. Good Luck. :)
Yeah it's all official I pay tax ect

Have a read of this it looks quite useful and probably explains it better.
#18
So what if I got her rental property put in my name could I get around it that way?
#19
if your wife's house rents out well then I would advise you to also consider the long term view and look 10-20 years ahead, accept the additional duty and think about the rent over that time, the extra value of the property and maybe a home for your children when the time comes
#20
if your wife's house rents out well then I would advise you to also consider the long term view and look 10-20 years ahead, accept the additional duty and think about the rent over that time, the extra value of the property and maybe a home for your children when the time comes
#21
Ok so just phoned hm customs and spoke to a gentleman who advised me that my wife if not liable for the second home stamp duty because she lives with me and when we sell our home we will be replacing it with another. She would only be liable if if we as a couple were adding property numbers to our portfolio
#22
mackey24680
Ok so just phoned hm customs and spoke to a gentleman who advised me that my wife if not liable for the second home stamp duty because she lives with me and when we sell our home we will be replacing it with another. She would only be liable if if we as a couple were adding property numbers to our portfolio

All good that you are sorted. Just collect up your evidence and keep it in a folder ready to hand over to your solicitor so he can take copies to satisfy HMRC.
#23
Thanks all

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