Tax implications of transferring joint tenancy to single ownership

[JointTenancy]

My former partner and I (not married) currently own a home as a Joint Tenancy (rather than a Tenancy in Common). We own it outright, so there is no mortgage. He is now planning to move out, and has had an offer accepted on a house, so I will be buying him out of his share of our house. We are on great terms, and have agreed on what we think is a fair price between ourselves. So as far as we are concerned, the price is agreed and we are ready.

What I'm wondering about is the SDLT (or any other tax) implications, if any. With a usual sale SDLT is due on the purchase price. Are the rules any different when transferring a Joint Tenancy to single ownership, bearing in mind that we are not related or married?

If you were married or in a civil relationship then there would be no stamp duty to pay. Likewise if you were getting divorced.

Even if you're not married, if you owned two homes of roughly equal value and you split them equally, eg you have one house and he had the other house then, again, there would be no stamp duty to pay.

However, where there is just one property it's a very different matter. Unless you were to physically separate the house into two separate apartments then stamp duty is payable. You need to actually physically divide the property in two.

If you don't do this then stamp duty is due on the value of his share of the property that you are buying from him.

So, if the value of your property is £500k then his share is £250k and there is no stamp duty to pay.

If the value of the property is £1 million then his share is £500k and there is stamp duty of £12,500 to be paid by him and/or both of you depending on what you decide between you.

[EDIT]

Just a wild thought, but depending on how much the property is worth, have you considered just getting married for the sake of avoiding stamp duty (a wedding at the registry office doesn't cost anything at all) and then afterwards just getting divorced?

It would save you the cost of any stamp duty if you are concerned about £12,500 on a £1 million home.

Haha, I don't think we'll be getting married then divorced to save on stamp duty. I can't say the thought didn't fleetingly cross my mind, but I think the hassle would cost more in non-monetary terms than it would save us. Wouldn't it also count as fraud? And wouldn't we just be swapping transfer-of-ownership stamp duty for additional-home stamp duty and capital gains tax (since there would be no PRR on the second home)? And doesn't divorce take a long time even in simple cases? Maybe there would be a way of lining everything up, but it sounds like a lot of trouble 😂

I assume although you both agreed amicably the actual legal transfer is being done by a solicitor? If so they will be best placed to advise on any tax implications/ SDLT.