Transfer of Equity / SDLT question for a married couple?

[section 44]

if there is any legislation

Part 4 of the Finance Act 2003 would be a good starting point.

[Mpoonshine]

Many thanks section44 for the suggested reading material.
I have now had a look at www.legislation.gov.uk/ukpga/2003/14/part/4 ... and some things on there might support our position…. but sadly I have now come to the conclusion not to spend any more time on this and just accept that HMRC have got away with what can only be considered as theft (double taxation).

Although I agree with the logic of what Maths raised earlier in this thread (before he/she went AWOL ), and I really really really wish the point Maths raised was the case.

Very brief recap of our case: Wife and I always earned roughly about the same. Finances always exactly 50/50 on all joint spending inc everything, property purchases and all. On purchase of previous house, after joint mortgage initially rejected I then had to get mortgage in my name only (we think poss issue with wife’s credit rating at the time). Mortgage then in my name only, but in real terms everything was 50/50 with the purchase, monthly payments etc as has always been the case, and lots of proof that is the case. Bank statements, spreadsheets etc etc Due to current lending criteria, had to remortgage in both names to get good deal (& wife wanted her name on the deeds of an asset that has always been completely 50/50 in real terms).

Reason I have now come to that conclusion just to accept that HMRC has got away with it is:
1. When I called the stamp duty helpline last year and asked them about this, the guy on the other end came back with a ‘tough luck / computer says..’ type answer.
2. Other forums including some I have just seen today with people in a relatively similar situation to ourselves concluded the same answer.

That said, maybe if we spend thousands on a high court challenge etc, I would be very surprised if we lost. But to initiate all that is perhaps unrealistic…

So, if you are out there somewhere ‘Maths’, thanks for giving me hope… but sadly I think it is time to us to move on and just accept that the 'system' got away with it..

[section 44]

My first post on this still stands.

The question that you should ask: in equity, did your wife co-own the property?

i.e. if your wife already had a 50% beneficial interest in the property then a transfer of the legal title from your name to both names would effectively be a nothing for stamp duty land tax purposes.

[Mpoonshine]

if your wife already had a 50% beneficial interest in the property then a transfer of the legal title from your name to both names would effectively be a nothing for stamp duty land tax purposes.

Sadly it appears that is not the case.

I called the stamp duty helpline again yesterday and explained again that my wife always clearly had a beneficial interest and if needed, lots of proof can be given confirming everything had always been 50/50 including deposit, monthly repayments, everything. It was also only a technicality that she was not named on the mortgage previously, after our joint application prior to purchase was rejected.

The person at HMRC that I spoke to said because she wasn’t named on the mortgage, the rules are clear… ‘computer says’ tough luck…

[Mpoonshine]

PS when I asked the person at HMRC (stamp duty helpline) if he can advise me where I can find confirmation of what he said, he referred me to:

http://www.hmrc.gov.uk/manuals/sdltmanu ... m04040.htm

[section 44]

I wouldn't place any weight on HMRC's stamp duty helpline.

If your wife had a 50% beneficial interest already then there is no liability.

[Mpoonshine]

Just to say many thanks to Section44, Maths and everyone else for your advice. For me, it was always the principle of not paying SDLT twice, rather than just the actual money in real terms. It has taken a long time - the best part of a year, but we finally got that ‘extra’ 50% SDLT (which the solicitor made us pay) refunded to us this week. My initial gut instinct was correct. You guys knowledgeable advice was also right. The conveyancers / solicitors and other advice received on another mainstream tax forum were wrong.

[maths]

I apologise if I went AWOL, as you put it.

Time is sometimes pressing and it's easy to forget that one has made a posting.

Also if someone else picks up the thread and offers advice which seems in line with one's own thought it's
sometimes better for the person asking the question to deal with just one answerer.

It seems that you eventually won the day; so well done!

[Salman]

Hi - I am facing the same problem. How did you convince Stamp Duty is not applicable. Did you file separate appeal? Any help will be much much appreciated!
thanks