Divorce settlements vs SDLT (Stamp Duty)

Toblerone_1234

I am in the final stages of a divorce, Part of the divorce settlement includes me buying out my wife from the marital home, I am re mortgaging the property with a new lender. I have received a completion statement from the new lenders conveyancing solicitor with a list of charges as long as my arm! 

Amongst these charges is a SDLT fee. I have contacted the solicitor and questioned the charge, Having read the GOV website it clearly states that if there is a transfer of interest in a property by means of a divorce, then there is no SDLT to pay. 

So, my question is, Am I paying SDLT due to me paying my soon to be ex wife 50% of the equity, as part of the buy out? And if this is the case how do the government calculate a figure? Or have the solicitor missed the fact that my purchase is part of a divorce settlement and there is no SDLT to pay?

Grateful for anyone's thoughts, or similar experiences.

user1977

What does the "SDLT fee" actually comprise? If it isn't a substantial amount I suspect you are just looking at the solicitor's fee for drafting and submitting a return, which still needs done even if you qualify for a relief.

SDLT_Geek

Toblerone_1234 said:

I am in the final stages of a divorce, Part of the divorce settlement includes me buying out my wife from the marital home, I am re mortgaging the property with a new lender. I have received a completion statement from the new lenders conveyancing solicitor with a list of charges as long as my arm! 

Amongst these charges is a SDLT fee. I have contacted the solicitor and questioned the charge, Having read the GOV website it clearly states that if there is a transfer of interest in a property by means of a divorce, then there is no SDLT to pay. 

So, my question is, Am I paying SDLT due to me paying my soon to be ex wife 50% of the equity, as part of the buy out? And if this is the case how do the government calculate a figure? Or have the solicitor missed the fact that my purchase is part of a divorce settlement and there is no SDLT to pay?

Grateful for anyone's thoughts, or similar experiences.

As your acquisition is under a settlement agreement, I would expect the exemption from SDLT to apply, so there is no need even for a land transaction return.  Usually the transfer document would refer to the divorce proceedings and to the date of the settlement agreement, so that the Land Registry can see there is no need for a return.

Toblerone_1234

user1977 said:

What does the "SDLT fee" actually comprise? If it isn't a substantial amount I suspect you are just looking at the solicitor's fee for drafting and submitting a return, which still needs done even if you qualify for a relief.

Thanks for the replies, The SDLT figure is £467, plus their costs equating to £563. This is based on (apparently) My re mortgage of £350k, of which I am taking £150k to pay my ex 50% of the equity. The solicitor states the SDLT is based on 50% of the redemption figure and the consideration fee. This just doesn't feel right.