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Buying husband out - do I have to pay stamp duty again?

(16 Posts)
HilaryXYZ Mon 27-Jul-20 08:53:24

Husband and I are divorcing amicably. No solicitors involved. I’m buying him out of the house. I need to give him £300k to buy him out of our £900k property. Mortgage was £300k. So all is fair. I am using conveyancing solicitors for the remortgage.

Nisi applied for but not come through yet. Then we will apply for the consent order.

My question is, am I liable to pay stamp duty again on the property? I understand that I have to put the consent order number on the land registry form. Does anyone have any experience of this? I need to do everything in the right order to avoid a massive stamp duty bill. I asked the conveyancing solicitors but they won’t advise on this. Thanks.

OP’s posts: |
seperatedmummy Mon 27-Jul-20 11:48:51

If it is less a than 12 months since you separated don't think there is a charge but best to take proper advice as I'm not in legal.

BloodSweatAndBeers Mon 27-Jul-20 11:58:35

No. It's a change in ownership rather than a sale so stamp duty is exempt.

loungewearisthewaytogo Tue 28-Jul-20 16:49:53

I'm going through this at the moment OP, soon to be exDH is buying me out. You will be liable for stamp duty in the entire mortgage unless you have a signed draft consent order x

loungewearisthewaytogo Tue 28-Jul-20 16:52:17

We haven't got our Nisi yet, but DH hit the roof when he found out he would have to pay stamp duty for the whole mortgage, can you do the consent order now? We did the consent order while the divorce was rumbling on in the background, the consent order was signed two weeks ago and the nisi hearing is next week

OneRingToRuleThemAll Tue 28-Jul-20 17:02:09

I didn't pay stamp duty on divorce. Maybe it's down to the value of the property. I'd be horrified having to pay it too.

loungewearisthewaytogo Tue 28-Jul-20 19:16:39

Our house was valued at £670k and equity was £334k. My husband was giving me half of this, so £170kish, but stamp duty was payable on the whole of the remaining mortgage plus his share of the equity.

loungewearisthewaytogo Tue 28-Jul-20 19:18:01

OneRingToRuleThemAll

I didn't pay stamp duty on divorce. Maybe it's down to the value of the property. I'd be horrified having to pay it too.


It's really unfair considering you've already paid the stamp duty once when buying the house

NotSuchASmugMarriedNow1 Tue 28-Jul-20 19:22:34

I didn't have to pay stamp duty when I brought my

Lockdownseperation Tue 28-Jul-20 19:23:58

I thought stamp duty was temporarily cancelled.

loungewearisthewaytogo Wed 29-Jul-20 08:21:54

If you divorce first you don't pay stamp duty, but if you do the finances first and then divorce it's deemed as a transfer between parties and stamp duty is liable. Reading the OPs post again it looks as if she may be going down the divorce route first so she may be ok 🤷🏼‍♀️. DH was very reluctant to divorce and just wanted to separate but changed his mind when he saw the figures involved 😂. Can't wait for all this mess to be done quite frankly 😫

Asdf12345 Wed 29-Jul-20 08:24:04

Thresholds temporarily changed but most definitely not cancelled.

Alarae Wed 29-Jul-20 08:35:58

If you transfer property because of divorce, separation or the end of a civil partnership
You don’t pay SDLT if you transfer an interest in land or property to your partner as part of an agreement or court order because you’re either:

divorcing
dissolving a civil partnership

This also applies if the partners either:

annul their marriage
legally separate

In these cases there’s no need to tell HMRC about the transfer, even if the value is more than the SDLT threshold.

https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property#:~:text=t%20normally%20apply.-,If%20you%20transfer%20property%20because%20of%20divorce%2C%20separation%20or%20the,divorcing

GlassOfProsecco Wed 29-Jul-20 11:52:20

I wonder if that applies to cohabitating /living together too?

loungewearisthewaytogo Wed 29-Jul-20 15:37:55

Alarae

If you transfer property because of divorce, separation or the end of a civil partnership
You don’t pay SDLT if you transfer an interest in land or property to your partner as part of an agreement or court order because you’re either:

divorcing
dissolving a civil partnership

This also applies if the partners either:

annul their marriage
legally separate

In these cases there’s no need to tell HMRC about the transfer, even if the value is more than the SDLT threshold.

https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property#:~:text=t%20normally%20apply.-,If%20you%20transfer%20property%20because%20of%20divorce%2C%20separation%20or%20the,divorcing


I think the "legal"separation is where me and EXDH came unstuck, he didn't want to do anything legally and for me to just move out and him buy me out of the house. We went down the legal route in the end to avoid the stamp duty x

TeeBee Fri 07-Aug-20 23:20:39

I bought my exDH out of my house before we divorced and before consent order was sorted; I didn't pay stamp duty. We just took him off the mortgage and transferred the deeds to me. The mortgage company insisted I took out a one-off insurance policy in case there was any financial complications later down the line.

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