How does the 3% SDLT surcharge apply where there is a joint borrower who has no beneficial interest?

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“I was just wondering if you had ever got an answer around the SDLT issue of joint borrower/sole proprietor? I am currently helping my younger sister in a purchase by going on her mortgage and not the title.”

Source: BLG Member 


As you will have no interest in the dwelling which is being purchased with the help of mortgage (other than a security interest if desirable) the tests for the 3% surcharge will be by reference to your sister only.

The additional rate requires a person to be a ‘purchaser’ before they are taken into account.  A ‘purchaser’ is a person acquiring a chargeable interest.  A ‘security interest’ is an exempt, not a chargeable,  interest and is defined as ‘an interest or right (other than a rentcharge) held for the purpose of securing the payment of money or the performance of any other obligation’.

At the time of publication this response was correct however as tax legislation and practice change from time-to-time you should take specific advice before taking any action.

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