Buying new home after separation.

SDLT_Geek

AnotherJoe wrote: »

SDLTgeek do you know how OP can show that he is separated in a way that HMRC acknowledges ? Does he need something offficial such asa court document ?

OP says he has a separation agreement. That would be a good start. Proof of different addresses over the last three years would help too. If HMRC query it after the event, then the fact that OP is buying a property for his own use (not for his wife to live in too) would be persuasive as well.

SDLT_Geek

AnotherJoe wrote: »

SDLTgeek …... And just to question your last statement, surely spouses normally are treated asa single until ?

I find it can lead one astray in many cases to say spouses are treated as a single unit. It certainly does not say that in the legislation. Nor does it in the HMRC Guidance. There is a lone reference to it in the original consultation document of 2015 as I recall it.


There are special rules about married couples who are not separated. One of them is that is one spouse buys a property alone then for the purposes of the higher rates the other is treated as a joint buyer. Other rules can allow one spouse who has lived in a home belonging to the other to rely on a disposal by the other spouse for the purpose of getting within the replacement exception.


So sometimes it might be a convenient (though sloppy) shorthand to say that spouses are treated as a single unit, and that way of thinking about it gives the right result in some cases, but not all.


For some examples where very different results arise see here: https://www.blakemorgan.co.uk/news-events/blog/hmrc-updated-guidance-sdlt/

Daverogers_2

SDLT_Geek wrote: »

I find it can lead one astray in many cases to say spouses are treated as a single unit. It certainly does not say that in the legislation. Nor does it in the HMRC Guidance. There is a lone reference to it in the original consultation document of 2015 as I recall it.


There are special rules about married couples who are not separated. One of them is that is one spouse buys a property alone then for the purposes of the higher rates the other is treated as a joint buyer. Other rules can allow one spouse who has lived in a home belonging to the other to rely on a disposal by the other spouse for the purpose of getting within the replacement exception.


So sometimes it might be a convenient (though sloppy) shorthand to say that spouses are treated as a single unit, and that way of thinking about it gives the right result in some cases, but not all.


For some examples where very different results arise see here: https://www.blakemorgan.co.uk/news-events/blog/hmrc-updated-guidance-sdlt/

Thanks so much for this. It makes sense to me now. I can prove we are not together and we have done our own separation agreement just not thru courts so I can prove we have no interest in Each other property.

For this who are wondering why we have not divorced. To be honest we just have not got around to it.

You guys are so helpful. I’ll keep you updated.

AnotherJoe

Daverogers wrote: »

Thanks so much for this. It makes sense to me now. I can prove we are not together and we have done our own separation agreement just not thru courts so I can prove we have no interest in each other property.

For this who are wondering why we have not divorced. To be honest we just have not got around to it.

You guys are so helpful. I’ll keep you updated.

You will have to prove it to HMRC and get a statement from them agreeing to that to present to your solicitor.

I feel confident it would be easier to get divorced.

Tigsteroonie

If I were you, I'd get around to that divorce. It will make things easier for more than just the house, for example, have you written a will since? If you die intestate, she'll inherit.

SDLT_Geek

I would also wonder whether the home-made separation agreement is effective to transfer away from OP his share in the former marital home. Normally a deed is needed.

So perhaps OP still has a share in the property and will (even though separated) be hit by the higher rates of SDLT on the purchase unless OP can first dispose of the share in the property.

Daverogers_2

I!!!8217;m going to ring h,roc stamp duty help line Monday I!!!8217;ll let you all know.

Daverogers_2

Ive spoke to HMRC stampduty department. They have advised me as long as I can prove we have been apart and will not be together thats good enough. I do not need a legal separation. However I will be filing for divorce shortly but at least I can buy my house.