Does Stamp Duty Apply?

NoStones

Long story short... Divorced and ex-wife still lives in the marital home. As part of the divorce, we changed from joint tenancy to tenancy in common and I am due a small percentage of the equity in the property in 4 years. I have been renting for several years and now want to buy. Would Stamp Duty apply to me?

marliepanda

Does your percentage ownership total more than 40k

booksurr

it is not about your share of the equity

it is simply a question of whether your share of the ownership of the whole property is worth more than £40,000. Any equity and/or o/s mortgage is irrelevant

if your share is >£40k then if you buy another property the higher rate SDLT will apply since you would then end up owning 2 properties. The fact you do not own where you currently live is irrelevant. In technical terms the place you currently rent is your main home and the ex-marital property is simply an additional property you own, it is no longer your main home given the finality of the divorce

read guidance here https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509184/GuidanceNote_Final.pdf

NoStones

Thanks all. I guess that's just thumped an extra £4k onto the cost of buying my house. 😒

NoStones

I suppose I was hoping for some sort of divorced/main residence/tenancy in common loophole that I couldn't see. They've tied this up pretty tight!

konark

Oh they got it wrapped up in pretty pink bows because it's a nice little earner but can't you claim the tax back if you sell the other property within 18 months. Please check this as it's not an area of my expertise.