Stamp Duty Refund: unusual scenario

frainy_180

This is a fairly simple question but I can't find this specific scenario anywhere on the forums. Apologies if it's there and I've just missed. 

I currently own a house with my ex girlfriend. She still lives there. I want to buy my own place as my main residence, which will cost me a bomb in stamp duty. 

At the end of the fixed rate period on the mortgage I have with my ex, the ownership of the house we own together will be transferred so that her parents own it with her and my name will come off the mortgage. 

So the house won't technically be sold. But I will no longer own it. Does a transfer of ownership like this qualify me for a stamp duty refund? Or would the house actually have to be sold for that to work? 

diego_94

Yes you will be able to get a refund as you are disposing of your share of the property that triggered the higher rate of duty.

don’t forget your capital gains tax as well!

[Deleted User]

frainy_180 said:

This is a fairly simple question but I can't find this specific scenario anywhere on the forums. Apologies if it's there and I've just missed. 

I currently own a house with my ex girlfriend. She still lives there. I want to buy my own place as my main residence, which will cost me a bomb in stamp duty. 

At the end of the fixed rate period on the mortgage I have with my ex, the ownership of the house we own together will be transferred so that her parents own it with her and my name will come off the mortgage. 

So the house won't technically be sold. But I will no longer own it. Does a transfer of ownership like this qualify me for a stamp duty refund? Or would the house actually have to be sold for that to work? 

Yes, that counts as a disposal. You have 3 years from when it ceased to be your main residence to make a claim so that’s 3 years from when you moved out not from when you are bought out of the property. 

SDLT_Geek

Lover_of_Lycra said:

frainy_180 said:

This is a fairly simple question but I can't find this specific scenario anywhere on the forums. Apologies if it's there and I've just missed. 

I currently own a house with my ex girlfriend. She still lives there. I want to buy my own place as my main residence, which will cost me a bomb in stamp duty. 

At the end of the fixed rate period on the mortgage I have with my ex, the ownership of the house we own together will be transferred so that her parents own it with her and my name will come off the mortgage. 

So the house won't technically be sold. But I will no longer own it. Does a transfer of ownership like this qualify me for a stamp duty refund? Or would the house actually have to be sold for that to work? 

Yes, that counts as a disposal. You have 3 years from when it ceased to be your main residence to make a claim so that’s 3 years from when you moved out not from when you are bought out of the property. 

There are two separate three year periods within the conditions to be able to qualify for a refund of the extra 3% paid on your new home:

(a)  That within the three years before you buy your new home, you had lived in the shared home as your only or main residence.

(b)  That within the three years after you buy your new home, you completely dispose of your interest in the former shared home.

You must then actually submit the claim to HMRC within a year of disposing of your interest in the former shared home.