Stamp duty higher rate: exemption for divorced people?

Naomi_Wolf

Wow, some very interesting reading there.thank you for your help. It's a shame that for divorced people, even those that happily decide to agree to share cost of marital home, the 'leaver' will not be exempt from capital gains or sdlt surcharge. (unless very specific court order made to that effect. And in this case, he didn't get any advice of the sort that mentioned such financial traps). I bet so many find themselves in his position, sadly.
Thanks again for all your help.

Naomi_Wolf

AdrianC said:

Ah - you said "renting out for years" in your original post, 

Typo at crucial place- I do apologise! (Damn these tiny keyboards!)

AdrianC the link has been incredibly useful for us, explains it in understandable terms, and seems to outline everything we need to know.

Thanks again for posting. We certainly know more on this subject than we did yesterday, and three seperate enquiries with lawyers (albeit conveyancey ones as opposed to tax or family ones) couldn't answer.  

Naomi_Wolf

SDLT_Geek said

For the partner to escape the 3% surcharge, if still owning a share worth £40,000 or more in the previous marital home, would require a "property adjustment order" to be in place, as others have said.  HMRC confirm it here: 

They mediated and agreed to own a home together until at least she buys him out, or child leaves full time education. There was no property adjustment order made. They mediated and came to their financial agreement.
Do you happen to know if, should they agree to remove him from the deeds and mortgage of the marital property, would that avoid the surcharge? 

AdrianC

Naomi_Wolf said:

Do you happen to know if, should they agree to remove him from the deeds and mortgage of the marital property, would that avoid the surcharge? 

He would no longer own the property.

[Deleted User]

Naomi_Wolf said:

SDLT_Geek said

For the partner to escape the 3% surcharge, if still owning a share worth £40,000 or more in the previous marital home, would require a "property adjustment order" to be in place, as others have said.  HMRC confirm it here: 

They mediated and agreed to own a home together until at least she buys him out, or child leaves full time education. There was no property adjustment order made. They mediated and came to their financial agreement.
Do you happen to know if, should they agree to remove him from the deeds and mortgage of the marital property, would that avoid the surcharge? 

A property adjustment order is just wording in a financial consent order regarding the property that is lodged at the court which can be by consent. Did they not do that after mediation reached agreement ? That usually happens. It doesnt mean there has to be a “trial” and the court make a decision. If he went to formal mediation, agreed a deal, then went back to solicitor to have it drawn up and stamped by the court - you almost certainly have that. 

Its not to late to lodge a consent order if you didnt complete the process - costs to do that would be cheaper than paying the stamp duty surcharge 
Google - “consent order after mediation” for various articles / guidances