SDLT on transfer of equity (separating couple)

kimdunja

Hi there,

My partner and I are separating after 13 years together. We are unmarried and jointly own a house: it is the first and only home either of us have ever owned. The separation is amicable / there'll be no court order etc.

I plan to buy him out of the house but need to calculate SDLT to get finances in order. I'm struggling to identify the consideration here specifically.

The house cost £240k it is now worth £375k. The outstanding mortgage is £195k.

I don't plan to give him 50% of the equity, as I have spent approx £15-20k of my own money on the refurb. Instead we have agreed that I'll give him £75k.

Can anyone help identify the consideration here so I can get started with the calcs?

Peter999_2

I don't think you have to pay anything, so long as this is your only property that you own.

You are giving your ex-partner   £75,000
The SDLT calculation is based on your half of the mortgage so £97,500

Added together this makes £172,500 (consideration) that is subject to SDLT.

SDLT is 0% on the first £250,000 so you wouldn't be liable for anything.   Obviously this is the case at the moment and it could change at any time (the chancellor has form for increasing SDLT with no warning at all).

This is a good resource to have a look at (I could well be wrong but I have been through a similar breakup though I was married).

Stamp Duty Land Tax: transfer ownership of land or property - GOV.UK

SDLT_Geek

Peter999_2 said:

I don't think you have to pay anything, so long as this is your only property that you own.

You are giving your ex-partner   £75,000
The SDLT calculation is based on your half of the mortgage so £97,500

Added together this makes £172,500 (consideration) that is subject to SDLT.

SDLT is 0% on the first £250,000 so you wouldn't be liable for anything.   Obviously this is the case at the moment and it could change at any time (the chancellor has form for increasing SDLT with no warning at all).

This is a good resource to have a look at (I could well be wrong but I have been through a similar breakup though I was married).

Stamp Duty Land Tax: transfer ownership of land or property - GOV.UK

The threshold has now fallen from £250K to £125K, so on these figures (I agree with £172,500 assuming the amount spent on the refurb is not a debt which you will forgive as part of the transfer) I would expect some SDLT to be due.

Peter999_2

SDLT_Geek said:

Peter999_2 said:

I don't think you have to pay anything, so long as this is your only property that you own.

You are giving your ex-partner   £75,000
The SDLT calculation is based on your half of the mortgage so £97,500

Added together this makes £172,500 (consideration) that is subject to SDLT.

SDLT is 0% on the first £250,000 so you wouldn't be liable for anything.   Obviously this is the case at the moment and it could change at any time (the chancellor has form for increasing SDLT with no warning at all).

This is a good resource to have a look at (I could well be wrong but I have been through a similar breakup though I was married).

Stamp Duty Land Tax: transfer ownership of land or property - GOV.UK

The threshold has now fallen from £250K to £125K, so on these figures (I agree with £172,500 assuming the amount spent on the refurb is not a debt which you will forgive as part of the transfer) I would expect some SDLT to be due.

Thanks for the correction.   I didn't realise it had been reduced to £125,000 - it was £250,000 when I did it.  I did get burnt when the chancellor (who worked in customer services for the same company as I worked for a while) when she changed it overnight and cost me an extra £3,000.

You actually really helped me at the time, so thanks for that as well, it all turned out well in the end.  You are a real asset to these forums.