Stamp duty on transfer after breakdown of relationship

[gavin]

My partner & I recently separated, and I agreed to buy her out of the house. We were not married. The old mortgage was for £110000, and I agreed to pay her £35000 for her share of the rest of the property. I am now being told by my solicitors that the Inland Revenue have changed the rules so that Stamp Duty is payable on half the mortgage plus what I am paying her. ie £90000 The property and mortgage were both previously in joint names, but I always though that either of us were liable for the whole amount, so how come removing her liabilty from the mortgage is seen by the IR as a benefit to me? I am faced with a bil for the best part of £1000 which I am not happy about, any advice / help would be greatly appreciated.

Thanks.

Gavin

[jamie.stokes@ntlworl]

I am in exactly the sme boat ! I have talk with the Inland Rev specialist office 0845 6030135, and they said that you are being hit because you are taking her share of the debt, EVEN if you're getting a mortgage to pay that off, they take the tax BEFORE you pay it off. Another Stealth tax addition.

I am not happy either, bt there seems to be no way arround this.

SOrry

[gavin]

Yeah, it's a bitch isn't it! All you can do is reduce your liability by assigning some of the money you give her to be for house contents / cars etc (And get her to pay half!). Good news is I sold the house afterwards and made a healthy profit! Well all's fair in love and war isn't it?

Good luck

Gavin