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Do I need to pay stamp duty if I am buying a house due to divorce?

(13 Posts)
Namechanger2015 Sat 17-Mar-18 11:15:29

Hi,

I am divorcing and I have read somewhere (on a few websites) that if a house purchase is due to a divorce, the buyer is exempt from paying stamp duty. These seems to be a vague suggestion on newspaper articles etc but I can't find anything concrete to back this up.

Does anyone know if this is true? Will I need to pay stamp duty as I am purchasing due to divorce?

I have a signed consent order stating family house must be sold - exh is now buying this from me in a transfer of equity. We have a consent order issued by court.

OP’s posts: |
Ilovecrumpets Sat 17-Mar-18 11:24:21

I may be wrong but I think it is that you are exempt from the stamp duty surcharge not stamp duty itself - this was the additional 3% stamp duty owed if buying in addition to main residence.

TittyGolightly Sat 17-Mar-18 11:25:42

You don’t pay stamp duty if you’re buying your ex out of their part of the property. If you’re selling and buying a new house with your proceeds you pay stamp duty as normal.

Trills Sat 17-Mar-18 11:25:51

www.gov.uk/stamp-duty-land-tax/reliefs-and-exemptions

You don’t have to pay SDLT or file a return if:
property is transferred because of divorce or dissolution of a civil partnership

From the phrasing ("transferred") I think if you are buying the other person's share of a family home, you don't pay stamp duty on the part that you are buying.
If you are buying a different house, I doubt there's any exemption.
I'm not an expert.

Knittedfairies Sat 17-Mar-18 11:27:08

I thought that the stamp duty exemption was only if one of the separating couple bought out the other on a property they owned jointly. Could be wrong though.

Ilovecrumpets Sat 17-Mar-18 11:27:11

Yes if transferring your share to your spouse then the other person doesn’t pay stamp duty on the transfer.

You buying a new property would pay stamp duty on the new property.

Namechanger2015 Sat 17-Mar-18 12:06:00

Oh. So he does not pay stamp duty on buying the house from me, but I will still have to pay on a new property?

This seems a bit unfair if I am the one going to be homeless?

OP’s posts: |
MandrakeLake Sat 17-Mar-18 12:11:42

Yes, that's right. He won't pay stamp duty on the transfer or "buying you out" but any new property purchased is liable for the full stamp duty.

Namechanger2015 Sat 17-Mar-18 12:26:36

Thank you, that's good to know.

OP’s posts: |
TittyGolightly Sat 17-Mar-18 14:59:28

This seems a bit unfair if I am the one going to be homeless?

Factor it into the divorce settlement then.

Familylawsolicitor Tue 20-Mar-18 09:02:54

Absolutely negotiate to factor it into the buy out costs

NeverTwerkNaked Tue 20-Mar-18 09:05:59

Think the suggestion to negotiate this into the settlement is the best one.
I didn’t pay stamp duty on buying my ex out of his share of the house. I guess he will have to pay when he proceeds to purchase. I didn’t even think of that. I would actually have agreed it was fair to reflect that in the split (and he was horribly abusive to me!)

Onlyoldontheoutside Tue 20-Mar-18 22:45:27

I moved out of the marital home and purchased a new house,I had to pay extra stamp duty as I owned a house and on the deeds of marital home.I have 3 years to claim the extra back.Nearly 2 years on and that house is finally on the market,fingers crossed.

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