On the general subject of second homes (which are also captured by the 3% SDLT that hits BTL) Sue Ellens point on married couples exposes a major anomaly in the tax on second homes. It not only hits on SDLT but on CGT when you come to sell (due to only being able to have one principle private residence).
Whilst I'm sure the majority of couples (married or not) live in just one home there are a lot of work related reasons to have two. It also goes against the principle of individual taxation (and ironically against the Conservative idea that marriage should be encouraged through the tax system).
The real anomaly is that if a married couple bought a house worth 900k then it would be free of both CGT and the extra 3% SDLT. If they bought a smaller one for 450k and then a second smaller one in a different part of the country for the same amount they would attract an extra 3% SDLT on the second transaction and be hit for CGT on any increase when it comes to sell.
What a perverse set of consequences!
Whilst I'm sure the majority of couples (married or not) live in just one home there are a lot of work related reasons to have two. It also goes against the principle of individual taxation (and ironically against the Conservative idea that marriage should be encouraged through the tax system).
The real anomaly is that if a married couple bought a house worth 900k then it would be free of both CGT and the extra 3% SDLT. If they bought a smaller one for 450k and then a second smaller one in a different part of the country for the same amount they would attract an extra 3% SDLT on the second transaction and be hit for CGT on any increase when it comes to sell.
What a perverse set of consequences!
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