Help! Second Home Stamp Duty Mess!

dollardan

Hi all! I am reaching out for some help in what seems a unique, but may actually be quite a common situation. 

I am buying a new property in England with my partner and have been told I need to pay second home stamp duty on it. 

My background situation is as follows.

I owned a house with my now ex wife,
we separated in November 2019, and had a decree Naisi in 2020. We were then working out how to split finances for a long period.

In that time I was living in a caravan on my dads drive, before I eventually needed a space for my boys at weekends and I purchased a house in November 2022. Despite my protest to the solicitor at the time, that I was separated and buying the new property alone. I was told I had to pay second home duty on it. I did and moved in.

Then in July 2025 we finally had the court order for the divorce, and the marital property was transferred to my now ex wife. and the decree absolute was issued.

I am still living in my own property which I paid second home duty on.

I now want to buy a new larger house with my new partner. For which I am told I need to pay second home duty for a second time. (She owns no property and never has, and is from the USA). But this time it’s much more. 5% of a bigger house value.

Please help advise.
1. Can I state that my new house is a replacement of my former marital primary home following the Transfer and with the TR1 document for the primary to my ex wife. and pay just single home duty and keep my current small house that I paid second home duty on as a rental?

2. Do I need to apply for a refund of second home on my current small property. 

Then either sell it before moving, or pay second home duty on the new larger one, sell my old one and then claim back the second home duty for a second time on the new property?

The solicitors really are not helpful. To them it’s “if you own any other property when we make the transaction it has to be second home duty”. I don’t think most have ever seen the Second home duty handbook!

Any help, advice would be greatly appreciated let me know if further clarification needed.

user1977

Replacing your main residence needs to have an overlap of not more than 3 years, but it sounds like you moved out of the marital home in 2019 and didn't dispose of your interest until 2025? So I don't think that's open to you in relation to your last purchase.

Not clear what your timescales are for the next move - if you are buying and selling simultaneously there's no additional tax due, if you buy first then you pay the additional amount in the first instance and can then reclaim after completion of the sale.

RAS

@SDLT_Geek

Should the 2022 deal have accrued the second home penalty? 

And proving the OP is selling there current home, should they pay the penalty for the new purchase?

dollardan

@user1977 Reference timing. It will probably overlap, which I can cover the additional duty (if needed). So it’s a question of if I can keep my current property as a rental and not pay second home on the new. Or if I can claim a refund on the current property, then sell the current property and then reclaim also on the new one.