Q. My client intends to help his daughter buy her first home by taking a 25% stake in the property. He will continue to live in his current main residence. Will the higher rates of stamp duty land tax for additional residential properties apply?
A. Yes. When a property is acquired by joint owners the higher rates apply if the transaction would have been a higher rates transaction for any of the joint purchasers considered individually. Your client is buying an interest in an additional residential property which is not replacing his main residence so the higher rates will apply to the whole transaction.
If you would like to discuss a tax query why not contact the Tax Advice Line on 0844 892 2470? Our team of experts have a wealth of experience and can also provide a written consultancy service at £180 per hour plus VAT.
