'Will I have to pay extra stamp duty on my new home?'
Samantha specialises in personal taxation and trusts. She enjoys being able to demystify these complex areas.
In January this year, we sold our main residence, although the property was just in my wife’s name.
We are buying our new home, again in my wife’s name. This is due to the fact I have owned 50% of my parents’ property for the past 20 years.
We’re worried that we may have to pull out of the purchase due to the extra stamp duty payable on additional properties – will this apply to us?
Graeme from Leeds
'Where you actually live is what matters here'
Samm Galloway, Which? money expert, says…
You won’t have to pay the 5% stamp duty surcharge that applies when buying additional properties in England and Northern Ireland.
Married couples are treated as a single unit for stamp duty purposes, so HMRC will treat you as if you are part of the purchase of your new home, even though it’s in your wife’s name. Your old home will also be treated as your main residence, along with your wife’s.
As HMRC views you as replacing your main residence, standard stamp duty rates will apply
As HMRC views you as replacing your main residence – even though you own an interest in another property – standard stamp duty rates will apply to the purchase of the new property.
There are some conditions. These include having lived in your old home at some point in the three years before you bought the new one, and making the new home your main residence.
You also can't purchase another main residence between selling your old home and buying the new one.
Readers should be aware that in Scotland and Wales, surcharges for additional properties differ, although the rules around replacing a main residence still apply.
- Find out more: Stamp duty calculator
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