How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 6950
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I am divorced and have maintained a 1% interest in my former

This answer was rated:

I am divorced and have maintained a 1% interest in my former wife's home and an investment property. The total value of the 1% share in these two houses is less than £6500 and a tax expert has confirmed that I would be eligible for the lower rate of stamp duty on purchasing a new property as this would be treated as my only home. Does this also mean that I wold be eligible for the government's help to buy scheme, specifically the equity loan that would provide up to 5% deposit? This would help a great deal in getting back on the housing ladder. Thanks

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

I concur with that tax experts opinion.

For the Help to Buy Scheme the purchase price must be no more than £600,000. Under this scheme, you can borrow 20% of the purchase price interest-free for the first five years as long as you have at least a 5% deposit. If you live in London, you can borrow up to 40% of the purchase price.

Customer: replied 3 months ago.
Hello BDOT. I'm glad you concur on the stamp duty answer I have already received. I am aware of how the Help to Buy scheme works. My questions above asks whether I am eligible for the scheme or not given the circumstances I have stated. Thanks.

In my opinion I think you are.

Customer: replied 3 months ago.
it would be useful to understand the grounds for your opinion.

Because you proportional ownership of the other property is negligible.

Customer: replied 3 months ago.
Negligible according to which rules?

A 1% holding is negligible.

Customer: replied 3 months ago.
Sorry BDOT, but my question is very carefully worded and asks about eligibility for the government scheme. I was not asking for a second opinion on the stamp duty issue. I would also have been satisfied with a more forthcoming answer with an argument as to why the government may see 1% as negligible (is there some kind of absolute or percentage threshold?) but you appear to have lost patience with me with a "Brexit means Brexit" answer. I'm rather sorry about that as I've had first rate answers from you in the past.

I am sorry. The general opinion is that if you own another property anywhere in the world you are not eligible, but I cannt accept that a mere 1% ownership would preclude you from the scheme.

bigduckontax and other Tax Specialists are ready to help you

Thank you for your support.