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Sam
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As husband & wife we jointly own our current home with a value

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As husband & wife we jointly own our current home with a value of £200k with no mortgage. We wish to buy another house to live in without selling our present one so we can rent it out. To avoid the new inflated stamp duty on 2nd homes and buy to let from 1 April, can we:
1. Transfer the equity of our current home to just one of us so the other is no longer a property owner?
2. Then purchase another property in the sole name of that person with no ownership?
If not, are there are other options open to us?
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi Thanks for your question - I am Sam and I am one of the Uk tax experts here on Just Answer.You can but1) You would lose the private residence relief on the name you take OFF the existing property and 2) You can only have one residence that can be treated as due private residence relief for you BOTH So you cannot have a property each as treated as your main residence I am afraid as this is not a valid proposition and there are no other options I am afraid as you you can either BOTH have the new residence treated as your main residence OR elect for the old property to remin treated as your main residence - On the plus side leaving matters as they are does allow the time you lived there to remin as forming an exemption for capital gains, for both the time you lived there plus the last 18 months of ownership AND you will then also attract 2 x private lettings relief which can allow up to a further exemption of £40,000 each - plus the first £11,100 exempt. I appreciate this does not help with the stamp duty position - but I am afraid there is no avoiding the 3% charge Let me know if I can assist further Thanks Sam
Customer: replied 1 year ago.
I'm not concerned about private residence relief. Obviously, the new property would be our joint home but if the property is owned by say, my wife who does not have title to another property, why she should have to pay the extra 3% stamp duty when she do not own another property.
Expert:  Sam replied 1 year ago.
Hi I just wanted you to have the full picture hence the reason for the private residence relief adviseIts not about ownership on its own, its about residency too (physical presence) and the fact you are married and will clearly live in the same property - so you cannot have two main residences between you - by law you can only have one. (and this does not relate to ownership but physical actuality) Thanks Sam
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