• Stamp Duty And Capital Gains Tax

    By Guest on 18th Oct 2017

    We own two houses, one as our main residence and the other that our son lives in. The one we live in is registered in my husband's name and was bought in 2000. The other is in my name and was bought from the local council in 2001 - we moved in in 2000. We lived in the 2001 property until 2008 then lived in rented accommodation to get my daughter into a good school, but our son stayed in the home and has remained there ever since. The 2000 property was derelict and being renovated - we eventually moved in, in 2009/2010.

    We are now looking at moving, but may need to sell both properties to do so. Alternatively, we could sell our main residence and take a mortgage out, leaving our son to remain in the other house.

    My question is, what would be the costs involved in either situation? I have read the stamp duty rules, and based on a £400,000 purchase can see we would need to pay £10,000 stamp duty, but as we have a second house, this would shoot up to £22,000. Is this the same if we sold both houses? Would we also then be liable to pay capital gains tax in addition to the stamp duty for the second house?

    Would it be possible to do the latter - sell just the one and take out a mortgage, leaving our son in the home? What costs would be involved in this and would this be negated if our son moved with us?

    Our houses are currently valued at £250,000 (main) and £150,000

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