Seperation and two new purchases

[jaller79]

I currentl have a buy to let property in joint names with my wife

We live in our family home - but are seperating.

The plan is to within 36 months - as follows :

Myself leave main residence and buy a new property -

Then 6 month later the main house is sold and my wife will then move to her own property -

I assume the rule will follow as below

I pay 3% on new home and when she sell the existing property and buys in here her own name I can then claim back my payment as we will both in effect be moving to a single main property.

Advice appreciated rather than writting to HMRC - direct.

Thanks all


John

[SDLT Geek]

I agree that you will be able to recover the 3% surcharge you have to pay on your purchase of a new home to live in, the recovery following the sale of the former matrimonial home.

The problem comes on your wife's purchase if she still has the half share in the buy to let. The way I read FA2003/Sch4ZA/para8, if the sale of the FMH has been used once to enable you to recover the surcharge already paid, the sale cannot be used again by your wife as part of the replacement exception on her purchase.

[jaller79]

Thanks this is indeed complex beyond belief - even asking the question to HMRC is problematic with them asking to write in only to get an answer.

thanks

John A