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Where Taxpayers and Advisers Meet

Transfer of property ownership and separation/divorce agreement

PatriciaP
Posts:1
Joined:Thu Mar 22, 2018 10:32 am
Transfer of property ownership and separation/divorce agreement

Postby PatriciaP » Thu Mar 22, 2018 10:42 am

Please can you clarify the situation in this scenario re SDLT liability

Separated/divorcing couple who have two properties A & B both jointly owned

Property A. Wife lives in it and is now sold for £500K, after complete mortgage repayment equity is £327K
Property B. Husband lives in it. Value is 330K. Owned jointly outright no mortgage or any other loan secured against it.

Plan is for wife to have the equity from property A and transfer the joint ownership of property B to sole ownership by the husband.
Is there any sort of SDLT liability in this situation?

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

Re: Transfer of property ownership and separation/divorce agreement

Postby SDLT Geek » Thu Mar 22, 2018 3:31 pm

If the property transfer between husband and wife is made pursuant to divorce proceedings then it is likely to benefit from a special SDLT relief for this situation. Sometimes relief is obtained because it is pursuant to a court order, I recall that it can be enough to be pursuant to an agreement in divorce / separation proceedings, but you would need to check.


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