In this week’s Q&A, Marsha Haywood, adviser at Croner-i VIP Tax Team, explains liability for higher rate stamp duty land tax on replacement of main residence by spouse
Q. My clients are querying whether the stamp duty land tax (SDLT) higher rates on the purchase of a property needs to be paid. They are a married couple but each lives in their own property, held in their own name. The wife is selling her property which will be replaced with another property for her to live in, again to be purchased only in her name.
A. The additional 5% applies to an acquisition of a major interest in a single dwelling if conditions A to D of FA 2003 Sch 4ZA para 3 are met, these are:
3(2) Condition A is that the chargeable consideration for the transaction is £40,000 or more.
3(3) Condition B is that on the effective date of the transaction the purchased dwelling–
(a)is not subject to a lease upon which the main subject-matter of the transaction is reversionary, or
