Stamp Duty - divorce rules

Mrssarahr

After some help with stamp duty.  I have read the website and spoken to the office and neither told me the information I needed.  

Basically, I am currently divorcing my husband.  The application is in and I’ve been told it can take 8 months to complete.  We bought the house together and I have now bought him out and the mortgage and land registry is in my name.  

If he purchases a property now will he be subject to the full stamp duty as a second home because he is still legally married to me, or will he follow the normal rules as it’s his only property?  The information is not clear and I have heard horror stories where people have been sent bills.  The houses he is looking at are around 180- 200k so the price will be about 5-6k so we really need to find the criteria.  Even the solicitor who orchestrated the deed change wouldn’t commit to an answer.  All just directing me to the website.  I have learning difficulties and don’t pick up information great.  

I just don’t want him getting hit with a bill that could be avoided but also I want him to be able to find a new house and not have to wait 8 months. 

Any help would be greatly appreciated 

Brie

If it's your house it's your house and nothing to do with him.  Same as any couple that is not divorcing but owns separate property I would suggest.  

Bookworm105

NO

on the assumption you are legally married to him then where the relationship is "permanently" broken down and each go their own ways, the purchase of a property by one of them in which to live as that person's main home is exempt from the higher rate SDLT 
note the breakdown is a matter of fact, it therefore can occur before the formal divorce goes through a court 

"This additional test does not apply if the married couple are either legally separated (by court order or deed of separation) or they are, in fact, separated in circumstances in which the separation is likely to be permanent [Para 9(3) and section 1011 Income Tax Act 2007]."
SDLTM09820 - SDLT - higher rates for additional dwellings - individuals - purchasing without your spouse or civil partner - Para 9 and 9A Sch4ZA FA2003 - HMRC internal manual - GOV.UK

SDLT_Geek

Mrssarahr said:

After some help with stamp duty.  I have read the website and spoken to the office and neither told me the information I needed.  

Basically, I am currently divorcing my husband.  The application is in and I’ve been told it can take 8 months to complete.  We bought the house together and I have now bought him out and the mortgage and land registry is in my name.  

If he purchases a property now will he be subject to the full stamp duty as a second home because he is still legally married to me, or will he follow the normal rules as it’s his only property?  The information is not clear and I have heard horror stories where people have been sent bills.  The houses he is looking at are around 180- 200k so the price will be about 5-6k so we really need to find the criteria.  Even the solicitor who orchestrated the deed change wouldn’t commit to an answer.  All just directing me to the website.  I have learning difficulties and don’t pick up information great.  

I just don’t want him getting hit with a bill that could be avoided but also I want him to be able to find a new house and not have to wait 8 months. 

Any help would be greatly appreciated 

I am assuming that he would be buying in England, so the relevant stamp duty is stamp duty land tax.

As @bookworm105 says, then so long as your are separated in circumstances where that separation is likely to be permanent, if one spouse alone buys, the property owning position of the other spouse is irrelevant in working out whether the extra 5% SDLT applies to the purchase.

Mrssarahr

I am in the uk, we are separated and like u said divorce paperwork is filed and on the government system.  But he is still living at this house as rent is scarce around here and he wanted to buy straight away.  

I just didn’t want him to get stung with a bill or prolong the current living situation and cause the children any worry.  

We just want to move on just not be billed loads (on top of what bills already received) 

Bookworm105

Mrssarahr said:

I am in the uk, 

there is a distinction between England/Wales and Scotland and N Ireland when it comes to property taxes
so saying you are in UK does not cover the nuance that SDLT geek was making
when giving answers "we" typically assume it is SDLT which applies to you as that is the England/Wales property tax, it is not same in Scotland or N Ireland. 

Mrssarahr

Bookworm105 said:

Mrssarahr said:

I am in the uk, 

there is a distinction between England/Wales and Scotland and N Ireland when it comes to property taxes
so saying you are in UK does not cover the nuance that SDLT geek was making
when giving answers "we" typically assume it is SDLT which applies to you as that is the England/Wales property tax, it is not same in Scotland or N Ireland. 

Oh sorry - should have been more specific - I am in north east of England.