Clarification about reclaiming stamp duty

tenfoottallpaul

Hi all,

Yet another question about stamp duty I'm afraid. I am in the final stages of buying a property - all contracts are signed, and the deposit is with the solicitors who want to set a date. Now, I have been separated from my wife for five years now and have been renting another property for just over four, but at the moment my name is still on the mortgage and deeds for the house that I left and she still lives in. This is all being dealt with - she is in the process of remortgaging in her own name and is removing my name on the deeds.

The whole process has been dragging on for months because of this though, and I now have a quandary with regards to stamp duty on my new house. Obviously, I can wait for the deeds on the old property to change, freeing me from any stamp duty costs. Her solicitors have been absolutely terrible and have dragged things along the whole way. So my other option is to pay the stamp duty now to actually get moved in before I die of old age, and then claim back which is something I'm now reluctantly considering and will accept that as a short term solution.

Despite reading endlessly about the process, still have a couple of questions about it though

1. I am currently still on the deeds but the house has not been my main residence for four years. There seems to be constant references to previous main residences when discussing claiming for a refund, but in my case, the property hasn't been. Would this complicate my refund claim?
   
2. How complicated in the process to claim for a refund? Is it really just a case of filling in a simple form, or should I really delegate that to a solicitor? Having got to the point where I'm finally done spending (I'm also paying for my ex's re-mortgate costs), I'd like to minimise any future costs.

Any advice on these points would be greatly appreciated.

Pixie5740

Did this endless reading include HMRC's Guidance Note about the higher rate of SDLT? I suspect not otherwise you would already have seen Q18 in Section 8.

Q18 I have recently separated from my spouse and am about to purchase a new property that will become my main residence. I still own a share in the former marital home. Will I be liable for the higher rates of SDLT?

A18 If you purchase a new main residence while still owning a share in your former home the higher rates will apply. However, if you dispose of a major interest in your previous main residence within 3 years of purchasing your new one, a refund of the higher rates can be claimed.

Just over 4 years is not within 3 years.

tenfoottallpaul

Thanks for your reply - I have indeed read that document, and is one of the things that made me want to seek clarification.

My main confusion is actually the line you highlighted - Is my interest in the property based on my name being on the deeds for it, and so I can claim a refund within 3 years of my name being removed? In which case I can pay stamp duty now, and then claim a refund when the deeds for the previous property have updated.

Or did the 3 year limit to claim a refund begin when I moved out originally? In which case I appreciate I have missed the window for claiming back any stamp duty I have to pay.

Pixie5740

Does 3.46 apply to you?

AdrianC

tenfoottallpaul wrote: »

Is my interest in the property based on my name being on the deeds for it

Of course. You are still a part-owner of it.

and so I can claim a refund within 3 years of my name being removed?

Yes, if it has been your primary personal residence within the three years preceding the purchase.

Which, in your case, it hasn't.

Also, if you are still married, then that would normally mean you and your (not-yet-ex)-spouse would be counted as a single unit for SDLT purposes.