Additional properties and Stamp Duty Land Tax

Posted by John Shallcross on

This article was first published in Tax Adviser on 1 Jan.

John Shallcross considers issues for couples buying a property using ‘Joint Borrower Sole Proprietor’ mortgages in a piece written for Tax Adviser.

Joint borrower sole proprietor mortgages are sometimes put forward as part of a solution to a stamp duty land tax problem where one of a couple has a property and the other does not. But often they do not achieve the saving intended.

  • The 1% surcharge for non-residents might be coming! Stamp Duty Land Tax (SDLT) on residential property has become very complicated, especially concerning the extra 3% due where someone buys an ‘additional property’ (the higher rates). It is set to get even more complicated with a further 1% surcharge to be introduced for non-resident buyers. A consultation paper on that proposal is due out in January 2019. Representations have been made that the consultation paper should include an option to radically simplify the 3% surcharge and integrate the extra charge into it; but do not hold your breath!
  • A trap for couples buying a home together: There is a particularly nasty 3% surcharge trap for couples buying a home to live in together where one already has a property.
  • No married bliss: The rules are particularly tough for married couples/civil partners who are living together.
  • An escape for those who have not tied the knot? There can be the potential for one of the couple alone to buy the new property so that the purchase is not ‘tainted’ by the property belonging to the other person.
  • First time buyers’ relief
  • A living together agreement

John looks at several examples for the above issues. Read the article in full here.

About the Author

Photograph of John Shallcross

John is an experienced real estate Lawyer with a background in agricultural and landed estate property work. He has also developed a specialisation as an adviser on the stamp duty land tax implications of property transactions.

John Shallcross
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