Question:
My daughter currently owns a property worth £160,000. She wants to re-mortgage with a buy-to-let mortgage for 75% of the value, and I will invest 25% cash. Will there be stamp duty to pay?
Arthur Weller replies:
It is not clear whether you are buying a quarter of the property or not. If not, there is nothing to talk about - obviously no stamp duty land tax (SDLT). But even if you are, £40,000 is less than the current SDLT threshold of £125,000. However, the Government is introducing an additional 3% SDLT on purchases of second residential properties from £40,000 upwards from 1 April 2016.
