The additional cost of a helping hand
The additional Stamp Duty Land Tax charge from April 2016 (the relevant percentage plus 3%) due in relation to second properties has been well publicised. One small point for people to watch out for is the precise operation of the new provisions. At the moment the test is whether or not you own more than one property at the end of the day and the property you are purchasing is not a replacement for your principle private residence. Those who are in a position to help a relative to get on the property ladder, buy property for a son or daughter at University or maybe a retirement home for a relative may come in for a shock. Technically this provision will catch them and from 6 April 2016 the additional SDLT charge will bite. Consideration should be given to whether it might be better to lend the money and protect the interest in the property with a registered legal charge instead of appearing on the title deeds.
Date: 16th February, 2016
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