Property News · May 12, 2016

Will higher rate stamp duty apply if my ex wants to buy me out?


Confusion over new rules and how they apply to purchasing full stake in part-owned property is affecting my chances of buying a place of my ownQ: I desperately need some advice on the new stamp duty rules. My boyfriend and I split up last year but we own a property together, bought in 2010, which is our primary residence. He has a buy-to-let property which is nothing to do with me (and neither of us have lived there) that he’s owned for 10 years, bought with inheritance from his grandparents. We are currently in the process of him buying me out of my half of our property so that I can buy a place of my own. Our solicitors are saying that he will have to pay the higher rate of stamp duty land tax on this purchase, even though he is not buying a new property and this will remain his main residence. This is an increase of £7,000 on the stamp duty he was expecting to pay and he isn’t sure he can afford it, which is putting my house purchase in jeopardy. Everyone seems unsure of what is correct in this situation and we’re both extremely confused. Surely the stamp duty change was to stop people purchasing second homes, not from buying additional interest in the property they already own? Neither of us can quite believe that he will have to pay over £10,000 in stamp duty to purchase half of the house he already owns and lives in. SS Continue reading…

Source : theguardian.com
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