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Where Taxpayers and Advisers Meet

Sdlt separated, husband bought me out

NatalieMc
Posts: 1
Joined: Tue Nov 13, 2018 9:29 pm

Sdlt separated, husband bought me out

Postby NatalieMc » Tue Nov 13, 2018 9:37 pm

Hi all,
I’m hoping for some advice
I have been separated for nearly 3 years. When we split I moved out and rented and husband stayed in the marital home. In July he remortgaged and bought me out, I’m no longer on the deeds. We aren’t divorced or legally separated. I am using the money from I got for selling him my share as a deposit to buy a home for myself, the house is £92,000. This will be my only and main residence. My solicitor has said I have to pay 3% sdlt as it is a second home, as I am still married and he owns a home. I have had a look online but it’s very confusing. Would anyone with knowledge of this be able to tell me if this is correct.
Thank you
Natalie

AGoodman
Posts: 852
Joined: Fri May 16, 2014 3:47 pm

Re: Sdlt separated, husband bought me out

Postby AGoodman » Wed Nov 14, 2018 6:02 pm

It seems to be wrong: para 9(b) Sch 4ZA Finance Act 2003:


Spouses and civil partners purchasing alone


9
(1) Sub-paragraph (2) applies in relation to a chargeable transaction if—

(a) the purchaser (or one of them) is married or in a civil partnership on the effective date,

(b) the purchaser and the purchaser's spouse or civil partner are living together on that date, and

(c) the purchaser's spouse or civil partner is not a purchaser in relation to the transaction.


(2) The transaction is to be treated as being a higher rates transaction for the purposes of paragraph 1 if it would have been a higher rates transaction had the purchaser's spouse or civil partner been a purchaser.

(3) Persons who are married to, or are civil partners of, each other are treated as living together for the purposes of this [Schedule] if they are so treated for the purposes of the Income Tax Acts (see section 1011 of the Income Tax Act 2007).

AGoodman
Posts: 852
Joined: Fri May 16, 2014 3:47 pm

Re: Sdlt separated, husband bought me out

Postby AGoodman » Wed Nov 14, 2018 6:04 pm

The definition of living together is here:


1011 References to married persons, or civil partners, living together
Individuals who are married to, or are civil partners of, each other are treated for the purposes of the Income Tax Acts as living together unless—
(a) they are separated under an order of a court of competent jurisdiction,

(b) they are separated by deed of separation, or

(c) they are in fact separated in circumstances in which the separation is likely to be permanent.

maths
Posts: 7561
Joined: Wed Aug 06, 2008 3:25 pm

Re: Sdlt separated, husband bought me out

Postby maths » Wed Nov 14, 2018 8:56 pm

Although still married it would appear that you are separated in circumstances which is likely to become permanent; you do not need to be "legally" separated.

As a consequence, the 3% SDLT charge should not be in point as you are replacing one residence for another.

However, if you "complete" on your purchase on or after 27 November then your former marital home must have been your actual residence within the 3 years prior to the date of completion which I'm not sure it will have been as you appear to have moved out more than 3 years ago?

SDLT Geek
Posts: 171
Joined: Sun Apr 30, 2017 5:45 pm

Re: Sdlt separated, husband bought me out

Postby SDLT Geek » Wed Nov 14, 2018 9:58 pm

It does not matter that Natalie has not lived in the property in the last three years if there are no other properties “counting against” her. If when she buys the new one she owns nothing else and is permanently separated from her spouse then she is in the clear from the 3% surcharge.

maths
Posts: 7561
Joined: Wed Aug 06, 2008 3:25 pm

Re: Sdlt separated, husband bought me out

Postby maths » Wed Nov 14, 2018 10:30 pm

SDLT Geek. Agreed. Just testing !!


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