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I would like to fully understand the following passage from https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property :

You must pay the higher Stamp Duty Land Tax (SDLT) rates when you buy a residential property (or a part of one) for £40,000 or more, if all the following apply:

it will not be the only residential property worth £40,000 or more that you own (or part own) anywhere in the world

you have not sold or given away your previous main home

no one else has a lease on it which has more than 21 years left to run

Question. Suppose the buyer in question owns half of one property (and that's it). Moreover, the whole property worth £50,000 (so its half worth £25,000). If they buy a flat in the UK (for >£40k) do they need to pay higher SDLT according to this passage?

aglearner
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1 Answers1

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I decided to call to SDLT helpline to double check with them what is the answer to my question. The answer is NO I don't need to pay higher rates . The explanation is given in the following link:

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09780

Here is a citation from this page with a clear example:

Example

A jointly owns a buy-to-let property with 4 friends. The property is worth £150,000, with A’s share being worth £30,000. A currently lives with her parents but is now looking to purchase a home to live in. A will not have to pay the higher rates of SDLT because A’s share of the buy-to-let property is under £40,000.

So the answer to my question is NO, because my share is worth £25K which is less than £40K.

aglearner
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