Stamp duty refund

maggiesoup

Son & his gf are breaking up. They bought a flat (in England) a year ago and paid £25k stamp duty.  The gf has been speaking to an independent mortgage adviser (presumably with the view of getting a new mortgage in her name only after Transfer of Title) and he mentioned that they should be able to get half of the Stamp duty back.  Can anyone give me any more information please.  My son's not keen on speaking with this guy as he's obviously acting for the gf. Sorry to sound like a helicopter mum but the gf tended to deal with the finances more than son.  Thanks for any help 

amnblog

Sounds like nonsense to me, but the information on the discussion is now 3rd hand.

More likely the adviser was referring to any SLDT due in transferring 100% into GF name.

saajan_12

Was this their first property, ie the 25k stamp duty was just the usual rates no additional 3%? If so, there would be no refund, it was paid to HMRC and is now gone. If they sold to a 3rd party then they would both have to pay stamp duty anew with no refund of the prior costs. They would simply split the sale proceeds and sort out their own new accommodation including moving costs, stamp duty, solicitors etc if buying again. 

If the gf is remaining and buying out the property, then arguably she is saving some of those costs - namely moving and some stamp duty while son would have to spend more to end up in an owned property. Son might want to negotiate getting a little more for transferring his share to offset these costs. Not saying he'll win, but he can try. 

maggiesoup

Thanks to both

user1977

Yes, I would guess this was a reference to recouping some of the costs when the couple agree what's due between them, there's nothing going to be refunded by HMRC.

maggiesoup

That makes sense  thanks 

maggiesoup

amnblog said:

Sounds like nonsense to me, but the information on the discussion is now 3rd hand.

More likely the adviser was referring to any SLDT due in transferring 100% into GF name.

Can you expand on the 2nd paragraph please.

maggiesoup

saajan_12 said:

Was this their first property, ie the 25k stamp duty was just the usual rates no additional 3%? If so, there would be no refund, it was paid to HMRC and is now gone. If they sold to a 3rd party then they would both have to pay stamp duty anew with no refund of the prior costs. They would simply split the sale proceeds and sort out their own new accommodation including moving costs, stamp duty, solicitors etc if buying again. 

If the gf is remaining and buying out the property, then arguably she is saving some of those costs - namely moving and some stamp duty while son would have to spend more to end up in an owned property. Son might want to negotiate getting a little more for transferring his share to offset these costs. Not saying he'll win, but he can try. 

Just saw their Cash acount from buying solicitors and SDLT does have 3% added.  They do have another property in Scotland which they hsve agreed son will get moved to his name and London flat moved to hers.  Does this help to explain about a possible HMRC rebate?  Thanks