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Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I own a property worth £650k with a £190k mortgage. My wife

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I own a property worth £650k with a £190k mortgage. My wife and I both live there (I have lived there for c8 years, my wife for 2 years 9 months). I have no other property. My wife has a property in Greece worth c€80,000.I want to transfer half of the existing property into my wife's name, which represents a transfer of equity. My understanding is that stamp duty of 3% will be payable on 50% of the mortgage. Can you please confirm if is this is correct?Following the transfer of this half-share to my wife, we will take out a buy-to-let mortgage on the current property and, using this as a deposit (alongside a personal mortgage), purchase a property for c£950k (within a few weeks). It is then our intention to sell the existing property within 3 years.I know that we will need to pay the 3% stamp duty surcharge on the new property. However, I would like advice on whether if we then sell the existing property within 3 years we are eligible for a refund of this. I had understood that because the current property will become my wife's "main residence" on the initial transfer (and the payment of the 3% stamp duty on the £95k), when we then sell it she would have been deemed to have replaced her main residence and thus we can both apply for the refund (i.e. the fact she will still have a property in Greece does not affect this).

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly


Yes your understanding is correct that your wife will have to pay half of the mortgage value when you transfer the home into her name

But when you buy the new property there will then for the whole purchase price be stamp duty and the 3% surcharge which can be reclaimed if the joint property is sold within 3 years

So your understanding of the second point is also correct as its all involving main residences which is why the property in Greece does not affect these transactions



Customer: replied 5 months ago.
Many thanks Sam. Are you able to send me the link please which confirms the relevant legislation?


This is two separate aspects so I cans end you the link to the whole stamp duty legislation

This bit re the transfer of the existing position

This showing the flowchart of the additional rate position

Look at the flowchart under point 1.1

This shows that whilst your wife has two properties (UK and Greece at that time) that as the new purcahse will replace the joint home that there is stamp duty due which is refundabale if the joint property is sold within 3 years



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