Is this true?!!

squiffyjack

My partner and I are splitting up, I have been seeing if I can afford to take pay the outstanding mortgage (£97350) and pay him his half the equity (£86,350), the house valuation will be about £270000. Then change the ownership to me. Just been told that I might have to pay stamp duty!! Is this true?? If so WHY? I don't understand so explain very slooowly please. jackie

sarkin

No you do not pay stamp duty. you are just transfering equity

Robert_Sterling

Looked at one way you are buying partners share in the equity.
You are paying £86,350 for it.
The stamp duty will be nil on property worth that amount.

Leon_W

Directly from HM Revenue and Customs.

Q. I own a house jointly with my partner and we are splitting up, do I have to pay stamp duty?

A. You may have to. If you are taking over the house we will take account of any money you are paying your partner for their share plus the amount of the additional mortgage you are taking on. For instance if you are paying £30,000 and you have a joint mortgage for £100,000 we will work out duty on half the mortgage (£50,000) plus £30,000, making £80,000 so you will pay £800 stamp duty.

If you are getting divorced and the property is being transferred because of this, you will not have to pay any duty. You will need to add a clause to the document stating that "I hereby certify that this document it is exempt under category H in the schedule to the Stamp Duty exempt instruments regulations 1987".