SDLT - higher rates for additional dwellings: joint purchasers
Where a transaction is entered into by joint purchasers the higher rates will apply if the transaction would be a higher rates transaction for any of the purchasers considered individually [Para 2(3)].
If there are two individual purchasers and Conditions A to D are all met for one of them only, the transaction will be charged at the higher rates.
Equally, you will need to test if a purchase meets the conditions on the basis of any interests in property held by each joint purchaser’s spouse or civil partner, see SDLTM09820.
These rules applies whether an interest in a dwelling is purchased as joint tenants or tenants in common. It does not matter how small the interest of a particular purchaser is, the test is applied in the same manner.
Where an individual (who is not a spouse or civil partner of another purchaser) is one of the purchasers of a dwelling but they will have absolutely no beneficial interest in the property, they will not be treated as a joint purchaser of that dwelling. This would have to be evidenced in writing. Any future entitlement to capital proceeds from the sale of the property, to income or to occupy the property would mean that they do have a beneficial interest.
`Para` references are to paragraphs in Schedule 4ZA of the Finance Act 2003.