Equity Transfer - Is SDLT payable for foreign divorce?

metal675

Can someone please advise if SDLT is payable for equity transfer for a property as a result of a divorce where the divorce is not in the UK ?


Regards

SDLT_Geek

If a transfer of a property interest is made:

(a) in pursuance of an order of a court made on granting in respect of the parties a decree of divorce, nullity of marriage or judicial separation; or
(b) in pursuance of an order of a court made in connection with the dissolution or annulment of the marriage, or the parties' judicial separation, at any time after the granting of such a decree

then it is exempt from SDLT. That applies to orders of courts anywhere in the world if they fall within this wording. See Finance Act 2003 / Schedule 3 / para 3 (Transactions in connection with divorce etc).

See the guidance in the HMRC Manual here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm00550

metal675

Thank you, the link is very useful.


So I assume even if the spouses reach an agreement (memorandum of understanding) that should be sufficient and not wait till court decree ?

metal675

The above link does not specify anywhere in the world. I am being told by conveyancing solicitors that since it is not a UK court order I need to pay SDLT.


Hence my original query.

SDLT_Geek

metal675 wrote: »

The above link does not specify anywhere in the world. I am being told by conveyancing solicitors that since it is not a UK court order I need to pay SDLT.
Hence my original query.

I suggest you refer your solicitors to the legislation quoted.

davidmcn

metal675 wrote: »

The above link does not specify anywhere in the world.

It doesn't restrict "divorce", "separation" etc to any particular jurisdiction, which it would if that was what they intended.

metal675

Great, thank you both