Stamp Duty... surely this can't be right

UrghStampDuty

Hi, hoping someone can help me with this stamp duty query... surely this can't be right!

Background:

I'm separating from my partner (not married).

I have an additional property (my first flat - I was in negative equity when we bought our house so rented it out). Stamp duty paid when I purchased the property.

I'm buying my partner out of the property and borrowing an additional £30k during the re-mortgage to do so. We paid stamp duty when we bought the house.

When I received the legal papers from the legal team instructed by the mortgage company, it says that because I have an additional property, I have to pay stamp duty again on my main home (we paid SD when we bought the house) when I complete the transfer of deeds to my sole ownership...but if I wasn't married, the stamp duty wouldn't apply.

I just can't understand how the government thinks that's reasonable!

UrghStampDuty

The post above should say that I am buying ex-partner out of our shared property (main residence), not the rental which is mine alone. Couldn't edit my original post to explain!

UrghStampDuty

"if the Transfer is made in connection with a divorce or the dissolution or annulment of a civil partnership or the legal separation of married or civil partners then no duty will generally be payable whatever the amounts paid!!!8221;

SDLT_Geek

Perhaps some changes made with effect from the Autumn Budget on 22 November 2017 will at least save you from the higher rates of SDLT due when you acquire an interest in additional property. They will form a new para 7A of FA03/Sch4ZA once the Finance Bill becomes law. The rules are presently in effect by virtue of the Budget Resolutions.


The changes might help you if you have lived in the property throughout the period of 3 years leading up to your acquisition of the shares in the property and you had at least a 25% in the property to begin with.

It is not as good as the exemption on divorce, but it is better than nothing!

UrghStampDuty

SDLT Geek,
.
Thank you for taking the time to reply, and for the information - I'm re-mortgaging and transferring the deeds in the next couple of months, so will I be able to claim it back after the November budget?

I wouldn't mind paying the SD for a new purchase, i understand the purchase rules, even if I don't agree with them... but the fact that I'm not moving home just seems really unfair, it's literally removing one name from the deeds.

SDLT_Geek

The changes from the November 2017 Budget are already in effect through the Budget Resolutions and so you can rely on them even before the Finance Bill becomes law.

UrghStampDuty

Thanks again. The documentation from the solicitors didn't mention anything along those lines - you would hope that they would have included that if it could save me thousands! I'll mention the new paragraph when I fill in the forms. Thank you.

SDLT_Geek

SDLT_Geek wrote: »

The changes from the November 2017 Budget are already in effect through the Budget Resolutions and so you can rely on them even before the Finance Bill becomes law.

The Finance Act 2018 received Royal Assent on 15 March 2018, so these changes are now in effect through primary legislation. See Finance Act 2018 / Schedule 11 / paragraph 3.

UrghStampDuty

Hi SDLT Geek,

Thank you for the information, I really appreciate it. My remortgage has completed - the only SD bill that I've had is the £36 for checks :beer: I did ring them to confirm that it was correct - the advisor confirmed that it is, and she mentioned that it's my main residence so maybe that had something to do with it. I was sure that I'd still be liable but they're the experts so I'll accept the small bill and I'll skip merrily into the sunset!