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Where Taxpayers and Advisers Meet

Divorce: is SDLT payable in this situation?

DevonBen
Posts:8
Joined:Tue Jun 20, 2017 4:54 pm
Re: Divorce: is SDLT payable in this situation?

Postby DevonBen » Sun Jun 25, 2017 4:07 pm

My purchase will likely complete Friday 7th July. Not yet sure re the date but I am extremely hopeful I will sign it before 7th July.

Am I correct in thinking you mean that I might not have to pay the surcharge on the basis that i have already signed it over by the time of my purchase being completed? I.e it doesn't matter that the land registry won't have processed the transfer yet?

That would be great news - would I need to inform HMRC?

(Many thanks for this by the way!)

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Divorce: is SDLT payable in this situation?

Postby maths » Sun Jun 25, 2017 7:31 pm

It would seem by concession per HMRC that the additional 3% charge can be avoided even if the sale/transfer of the residence takes place after a purchase:

"In the case of a disposal of a previous main residence following a purchase of a new main residence, the land transaction return will have been made based on the higher rates of tax, unless the disposal happened before the date on which the land transaction return must be submitted. In such a case the land transaction return should be completed as if the higher rates do not apply."

The land transaction return must be submitted (ie received by HMRC) within 30 days of the ‘effective date’ of the transaction ie 30 days of "completion".

DevonBen
Posts:8
Joined:Tue Jun 20, 2017 4:54 pm

Re: Divorce: is SDLT payable in this situation?

Postby DevonBen » Sun Jun 25, 2017 7:38 pm

Ah I see. In this case "disposal" being defined as happening when I sign and date the transfer papers (and send them to the land registry) rather than when the land registry actually processes the transfer?

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Divorce: is SDLT payable in this situation?

Postby maths » Sun Jun 25, 2017 9:09 pm

Disposal refers to "completion".

SDLT Geek
Posts:232
Joined:Sun Apr 30, 2017 5:45 pm

Re: Divorce: is SDLT payable in this situation?

Postby SDLT Geek » Sun Jun 25, 2017 10:29 pm

That is right. The date of disposal is the date of the transfer document. That is the date written on it after it has been signed and when it is put into effect. It is therefore before the day when the transfer gets registered at the Land Registry.

DevonBen
Posts:8
Joined:Tue Jun 20, 2017 4:54 pm

Re: Divorce: is SDLT payable in this situation?

Postby DevonBen » Mon Jun 26, 2017 9:55 am

Many thanks to you both for your time and consideration. Extremely helpful!


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