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SDLT query

SDLT on purchase of 2 properties to convert into one property

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I hope someone can help with this query as I do not have much experience with SDLT. A married couple is buying a building that has currently been converted into 2 separate semi-detached houses. Due to mortgage issues, the husband will buy one and the wife will buy the other one before they convert them back into a single property. I understand that the 2nd purchase will attract the 3% SDLT 2nd homes surcharge. As the 2 properties are being converted into a single home, is there any way that the 3% surcharge can be avoided?

Would it make any difference if they managed to buy the 2 properties jointly?

Many thanks in advance for any assistance.

Replies (3)

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By Wilson Philips
22nd Sep 2020 22:50

I assume that no dwelling is currently owned?

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Replying to Wilson Philips:
23rd Sep 2020 10:23

The current dwellings will be sold before the purchase of the new dwellings.

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By Justin Bryant
23rd Sep 2020 09:42

Since they do not qualify for the subsidiary dwelling exemption, without careful planning you can be subject to the 3% SDLT surcharge on both dwelling units even if you dispose of your main dwelling within 3 years of the purchase and live in the units as your main dwelling.

Also, an MDR claim could increase your liability under the current SDLT holiday.

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