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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13914
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have a Stamp Duty question I hope you could help with. My

Customer Question

Hello there,
I have a Stamp Duty question I hope you could help with.
My wife owns a property with her mother (50/50) currently valued at £285,000, which we live in. The house is on the market and we've had an offer, but the buyer's chain is incomplete.
The property we want to buy is £340,000. The purchase will be funded by £60,000 deposit and £280,000 mortgage (in both of our names).
So essentially, we want to buy our first home as a married couple, but my wife has a share in our principle primary residence.
My question, if we were to buy the new property and keep our current property would we be subject to the new Stamp Duty surcharge?
We intend to sell our current house but we really need to move fast on the new property.
The increased stamp duty, if applicable, is a deal breaker.
Appreciate any advice.
Many thanks,
Nick
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.

I am afraid you would be subject to the additional 3% stamp duty surcharge as your wife already has part ownership of another property with no plans to dispose of this to make this new purchase.

The only way around this is to sell or gift her share of the original property prior to this purchase

Let me know if I can assist further

Thanks

Sam

Customer: replied 1 year ago.
Thank you. I thought as much.So what would be the total stamp duty due to HMRC for our purchase of £340,000, without selling our current property?
Expert:  Sam replied 1 year ago.

Hi

Thanks for your further question - which really should be listed as a new question with a new amount offered, but as this seems to be your first time on Just Answer. I will answer on this occasion.

On a purchase of £340,000 total stamp duty of £17,200

But if your wife sells or disposes of her share of the original property within 3 years then a refund of £10.200 would be due

Let me know if I can assist further but if you have all your need, then it would be appreciated if you would rate me for the level of service I have provided (or click accept)

Thanks

Sam