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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 14108
Experience:  I have been practising for 30 years.
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I bought a home for my parents in Feb 2015, I planned to

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Hi, I bought a home for my parents in Feb 2015, I planned to live there but then work circumstances changed and I rented in London, I have rented in 4 London properties since. My correspondence, where my car is insured, where I'm registered to vote etc is all at my London address. I plan to buy a flat soon as my main residence. Would I have to pay the extra stamp duty?
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: none
JA: Where is the home located?
Customer: london
JA: Anything else you want the Lawyer to know before I connect you?
Customer: no

Good afternoon. I will assist with your question - be aware this is an email not chat service therefore i maybe delayed in replying.

is there a mortgage on it? when did you buy it?

whos name on the deeds?

 

Customer: replied 12 days ago.
Hi,

Thanks for responding to my query.

There is a mortgage on it and I bought it in Feb 2015. My name is on the deeds.

If you purchased another property for which you paid but it is in your parents name and you have no interest in that property but you gifted it to them and you have no mortgage on it and they would be free to sell it and spend the money as they wished, and you then buy another house, there is no extra statute provided that is the only property.

 

The criteria is that you have to have no interest in the other property whatsoever that includes a deed of trust or a mortgage.

 

BUT if this is called into question, the revenue are going to ask you why you beatifically gifted this property to your parents and you would have to justify that. You would have to make sure that it wasn’t seen as a way of avoiding the extra stamp duty.

 

Don’t be at all surprised if the solicitor acting on your new purchase says that you have to pay the extra rate. If he does, there is no point in arguing, he’s going to have to send the circumstances to the Stamp Office in Birmingham raising the query and asking for a determination.

 

I have my opinion he may have his and they may be different but the only definitive answer will come from the Stamp Office.

Can I clarify anything else for you?

 

I am happy to answer any specific points arising from this.

 

Please take a moment to look at the top right-hand corner of the page and rate my service by clicking one of the stars at the top of the screen.

 

You may need to login again to use the rating service. Although it says "rate to finish" it doesn't close the thread and we can still exchange emails.

 

It's important that you use the rating service because that gives me credit.

 

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All you need to do is press Submit.

 

Thank you.

 

If you still need any points clarifying, I will still reply because the thread does not close.

 

Best wishes.

 

FES

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