'Will I have to pay extra stamp duty on my new home?'

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…

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 – 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.

Find out more:

Which? Money 1-to-1 guidance

Our team of money experts can answer your questions big and small, on topics from pensions to tax and savings to scams.

Which? Money members and their immediate family get unlimited access to 1-to-1 guidance sessions.

source https://www.which.co.uk/news/article/will-i-have-to-pay-extra-stamp-duty-on-my-new-home-aFaj18C67OMs