Stamp duty conundrum

austinbowaz

Hello, I have a rather complicated situation, and wonder if anyone can give advice.
I am currently in a civil partnership, which is about to be dissolved as we have been separated for a number of years.

Whilst we were together I got a joint mortgage with my partners uncle, as at the time my partner did not have the finances available to get a mortgage so he agreed to help.

Now that we have separated and my ex-partner is in a stable financial position, he was able to buy out my interest in the property, and they re-mortgaged, taking me off the title deeds (so the property is now owned by my ex-partner and his uncle).

I have put in an offer on a property, which has been accepted. I expect the dissolution of the civil partnership to be completed before the completion of the mortgage, however, if this doesn't happen before completion, would I have to pay the higher rate of stamp duty, even though I have no vested interest in my previous property, and I have been removed from the land registry, title deeds etc.? It's very complicated, I know, but any advice would be greatly appreciated!

AdrianC

No, it's simple - SDLT treats civil partners in exactly the same way as married couples - which means as a single unit. So if your civil partner owns property in their own name, it's treated as owned by you, yes.

However, if you are still in the partnership, but have a formal court order of separation or deed of separation, then the partnership is ignored - again, just as a marriage.
Read section 2.4 of this...
https://www.gov.uk/government/consultations/consultation-on-higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties/higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties

It's one reason why letting partnerships and marriages linger long after separation is a bad idea. Just break and get the paperwork settled.

AnotherJoe

I don't believe you will be liable to the extra since from what you've posted you clearly have no beneficial interest in uncle /to-be- ex's house and a dissolution is in progress however hopefully SDLT Geek will be along to clarify

SDLT_Geek

AnotherJoe wrote: »

I don't believe you will be liable to the extra since from what you've posted you clearly have no beneficial interest in uncle /to-be- ex's house and a dissolution is in progress however hopefully SDLT Geek will be along to clarify

I agree with AnotherJoe. On the basis that OP and his civil partner are "separated in circumstances likely to prove permanent" then the civil partner with not be treated as if the civil partner were also buying the new property for the purposes of establishing whether the higher rates of SDLT apply. As OP appears to have no property interests "counting against" OP then the higher rates should not apply to OP's purchase.

austinbowaz

Thanks so much for the replies. Has calmed my nerves no end!