stamp duty house purchase after divorce

roco2020

Hi, I'm hoping someone might know the answer to a stamp duty query, its a bit of a mess and I'm not sure if its a tax or legal question. 

My other half and I bought a house together in late 2020 following the sealing of a consent order from his first marriage in the Spring of 2020. The sealed order gave 100% interest in the marital home to his ex with the condition that the house was re-mortgaged & deeds transferred to remove my partner within 12 months. 

As the consent order was sealed detailing the above we did not pay any additional SDLT at higher rates for additional dwellings on our new property using the exemption under divorce and civil partnership dissolution. 

It now seems that the ex is unwilling or unable to re-mortgage and complete the transfer - are we at any point going to become liable for stamp duty on our purchase? The refusal to re-mortgage is a breach of the order and enforcement is ongoing issue but would like to know there's not going to be a SDLT bill as a result of partner remaining on the mortgage and deeds of the previous home. It took 6+ years and court action to get the consent order sealed so I'm not convinced that ownership of previous marital home (however technical) will be corrected anytime soon.    

Many thanks in advance 

SDLT_Geek

roco2020 said:

Hi, I'm hoping someone might know the answer to a stamp duty query, its a bit of a mess and I'm not sure if its a tax or legal question. 

My other half and I bought a house together in late 2020 following the sealing of a consent order from his first marriage in the Spring of 2020. The sealed order gave 100% interest in the marital home to his ex with the condition that the house was re-mortgaged & deeds transferred to remove my partner within 12 months. 

As the consent order was sealed detailing the above we did not pay any additional SDLT at higher rates for additional dwellings on our new property using the exemption under divorce and civil partnership dissolution. 

It now seems that the ex is unwilling or unable to re-mortgage and complete the transfer - are we at any point going to become liable for stamp duty on our purchase? The refusal to re-mortgage is a breach of the order and enforcement is ongoing issue but would like to know there's not going to be a SDLT bill as a result of partner remaining on the mortgage and deeds of the previous home. It took 6+ years and court action to get the consent order sealed so I'm not convinced that ownership of previous marital home (however technical) will be corrected anytime soon.    

Many thanks in advance 

It sounds to me as if there was a "property adjustment order" in place for your partner's former matrimonial home at the time of your joint purchase.  If so then that property did not "count against him" for the 3% surcharge.  This is a one off test, with no claw back provision.  There is guidance on it here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09797