My son and I own several rental properties. He has lived in one of them for five years. He now wishes to purchase a property in his own name as his main residence. Is he liable to the higher stamp duty land tax charge?
Arthur Weller replies:
Have a look at HMRC’s guidance at
www.gov.uk/government/uploads/system/uploads/attachment_data/file/570876/SDLT_Higher_rates_for_additional_properties.pdf (page 27, Q&A 7). You can see that if the value of his share of a rental property is more than £40,000, he will be liable to the higher stamp duty land tax when he now purchases a new property.
This question was first printed in Property Tax Insider in March 2018.