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Buying out partner - Will stamp duty apply?

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  • Buying out partner - Will stamp duty apply?

    As part of our imminent separation, and eventual divorce, my wife is wanting to buy me out of my share of our jointly owned property and I have no problem with this. We own the property outright. I believe that regardless of property value (which would be greater than £250K) or buy out value (>£125K) that married couples getting divorced do not have to pay stamp duty on such a property transfer. Is this the case?

    There will be a delay between property transfer and obtaining the divorce as my son is 18 in just less than a year and we want to keep our divorce simple. Does this matter?

    If I simply transferred over the property to her using form TR1 thru Land Registry, without any direct tie in to a remuneration would this be a problem?

  • #2
    Re: Buying out partner - Will stamp duty apply?

    If you are only paying her £125K and there is no mortgage on the property then there is no SDLT anyway as it is at the threshold.

    If you were paying £125K and taking over half of a £125K mortgage then you would be assuming a debt of £62.5K and the total consideration for SDLT purposes would be £187.5K and £1875 SDLT would be payable, but not if on the occasion of a divorce.
    RICHARD WEBSTERwww.rwco.co.uk
    As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.