Purchasing second property -Stamp Duty Question

mick02

Registered User
Messages
8
Good morning folks, just wondering if anyone out there can help me out with the following. My partner has a property which she purchased November 2006. I am a first time buyer. I was wondering with the Tax implications if we were to buy a house together. Would my partner have to pay stamp duty on her house and would I lose my first time buyer allowance on the new property.
Thanks in advance for any advice.
 
She will have no stamp duty to pay on her house if she turns it into an investment property as more than 2 years have elapsed since she bought it. Stamp duty will be payable at the normal rate on your new purchase if you buy a house together. If you buy a new house together for your own occupation this will be exempt (in most cases). You will get first time buyer mortgage interest relief and she can transfer what is left of hers from the investment property to the new house.
 
Yep, if you both buy a 2nd hand house, Stamp Duty applies.

I've heard of a few couples who have purchased a house in similar circumstances (one FTB, one not) and NOT paid Stamp Duty. They mess around with names on deeds and mortgages but as far as I can see this is totally illegal and they're opening up a whole world of pain if/when Revenue come chasing them down the line.

See

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particularly sections 5, 7 and 9.

As the previous poster said, you would still be entitled to the full FTB mortgage interest relief.