3% surcharge on second property purhcase

[Lea]

I have a small property ( subject to mortgage) that I have lived in on my own for a number of years. My partner and I would now like to buy a property together and I was hoping to rent out my property. However, I find that a new law, coming in in April 2016, would mean that I would be subject to an extra 3% surcharge ( stamp duty ) on the new purchase as the new house is a second home. Is that correct ?

Secondly, if that is correct, is the 3% on the whole value of the new purchase ? As I will only own half of it and it's my partners only ( 1st ) home ?

So confused. Would be grateful for some help please.

[Openlaw15]

Re: 3% surcharge on second property purhcase

I have a small property ( subject to mortgage) that I have lived in on my own for a number of years. My partner and I would now like to buy a property together and I was hoping to rent out my property. However, I find that a new law, coming in in April 2016, would mean that I would be subject to an extra 3% surcharge ( stamp duty ) on the new purchase as the new house is a second home. Is that correct ?

Secondly, if that is correct, is the 3% on the whole value of the new purchase ? As I will only own half of it and it's my partners only ( 1st ) home ?

So confused. Would be grateful for some help please.

Hello Lea,

From April 1 2016, 2nd resident properties (ie not businesses) including buy to let (rented out) in the UK, will attract land tax (stamp duty/ surcharge), starting at 3% up to £125k; 5% up to £250k, and higher beyond this. So 3% is the minimum.

http://www.zoopla.co.uk/discover/buy...gyefEt4WBVw.97

http://www.zoopla.co.uk/discover/buy...gyefEt4WBVw.97

[Debt Camel]

Re: 3% surcharge on second property purhcase

Is that correct ?

Yes

Secondly, if that is correct, is the 3% on the whole value of the new purchase ? As I will only own half of it and it's my partners only ( 1st ) home ?

Yes it is on the whole value. As I understand it, HMRC treats you and your partner as a "single unit" for this tax. Indeed if your partner bought the new house on his own and you were going to live in it and rent out your old one, he would be liable for the extra tax even though it is his only property!