Do you have to pay stamp duty if your partner is a first-time buyer?

Do you have to pay stamp duty if your partner is a first-time buyer?

First-time buyers have been granted some relief from paying stamp duty in recent years. In November 2017, the UK government introduced a stamp duty exemption for first-time buyers purchasing a property under a certain value. This exemption has since been extended and remains in effect as of the writing of this article.

If you are purchasing a property with a partner who is a first-time buyer, you may be wondering whether or not you will need to pay stamp duty. The answer depends on the specific circumstances of your purchase.

If the property is being purchased jointly and both you and your partner are first-time buyers, you will be eligible for the stamp duty exemption as long as the property value is below the threshold set by the government. This means that no stamp duty will be payable on the purchase.

However, if either you or your partner has previously owned a property, even if it wasn't in the UK, the stamp duty exemption for first-time buyers will not apply. In this case, you would need to pay stamp duty based on the purchase price and the applicable rates.

It is important to note that the stamp duty exemption for first-time buyers only applies to residential properties. If you are purchasing a property that is not meant to be your main residence, such as a buy-to-let property, the exemption will not apply and you will need to pay the applicable stamp duty.

When purchasing a property jointly, it is also important to consider the ownership structure. If the property is being purchased as tenants in common, each person's share of the property will be considered separately for stamp duty purposes. This means that if one partner is a first-time buyer but the other is not, only the share owned by the first-time buyer will be eligible for the stamp duty exemption.

If the property is being purchased as joint tenants, the entire property will be considered as one for stamp duty purposes. If either partner is not a first-time buyer, the stamp duty exemption will not apply.

In conclusion, whether or not you have to pay stamp duty when purchasing a property with a partner who is a first-time buyer depends on the specific circumstances of your purchase. If both partners are first-time buyers and the property value is below the threshold, no stamp duty will be payable. However, if either partner has previously owned a property, the stamp duty exemption will not apply and stamp duty will need to be paid based on the purchase price and applicable rates.

Frequently Asked Questions

Yes, if you are buying a property together as joint owners, and one of you is a first-time buyer, you may be eligible for a reduced rate of stamp duty. The stamp duty exemption or reduced rate will only apply to the portion of the property value that the first-time buyer is purchasing.

To be considered a first-time buyer, you must meet certain criteria. Generally, you should not have owned or have had an interest in a property anywhere in the world, either as a sole owner or a joint owner, before the purchase of the property you are currently buying.

No, there is no maximum purchase price for first-time buyer stamp duty relief. As long as you meet the eligibility criteria, you can benefit from the reduced stamp duty rate regardless of the property's value.

No, if you are buying a property with a partner who is not a first-time buyer, you will not be able to claim the full stamp duty exemption on your own. The exemption or reduced rate will only apply to the portion of the property value that the first-time buyer is purchasing.

No, if either you or your partner have previously owned or had an interest in a property, regardless of whether it was sold or still owned, you will not be considered first-time buyers for the purpose of stamp duty relief. Both buyers need to meet the criteria of being first-time buyers to qualify for the reduced rate of stamp duty.