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Where Taxpayers and Advisers Meet

Separation from Wife... Remortgage...

gingerdazza
Posts:13
Joined:Mon Feb 01, 2010 12:44 pm
Separation from Wife... Remortgage...

Postby gingerdazza » Wed Jan 04, 2023 5:59 pm

My wife and I own our current marital home (with mortgage)
We are separating. To pay her off, I'm remortgaging the family home and as part of that I am also transferring the property into my sole name.
I am concerned about any Stamp Duty liability as we are only separated (not legally), but do intend to divorce later this year.
On the HMRC website it states here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm00550

"Certain transactions made in connection with the ending of a marriage, or a civil partnership formed under the Civil Partnership Act 2004, are exempt from Stamp Duty Land Tax (SDLT)."

"These transactions are those made between the parties to the marriage or civil partnership as a result of

certain types of court order
an agreement between the spouses/partners in contemplation or in connection to the dissolution or annulment of their marriage or civil partnership
their judicial separation or a separation order
The exemption is not available if the transaction involves someone other than the spouses or civil partners.
"

But HMRC fail to state what "an agreement" is.

Is it sufficient for my wife and I to draw up a Separation Agreement ourselves and sign it?
Or must we get it done by solicitors prior to the remortgage being processed? (at a cost of around £2k)

I have 2 months to complete the remortgage and desperate for some clarity here.

Thanks

pawncob
Posts:5084
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Separation from Wife... Remortgage...

Postby pawncob » Thu Jan 05, 2023 11:00 am

https://www.lawdepot.co.uk/contracts/separation-agreement-united-kingdom/
With a pinch of salt take what I say, but don't exceed your RDA

bd6759
Posts:4239
Joined:Sat Feb 01, 2014 3:26 pm

Re: Separation from Wife... Remortgage...

Postby bd6759 » Thu Jan 05, 2023 11:21 pm

The law itself says the same:

d) at any time in pursuance of an agreement of the parties made in contemplation or otherwise in connection with the dissolution or annulment of the marriage, their judicial separation or the making of a separation order in respect of them.


A judicial separation involves an order of the court.

AGoodman
Posts:1725
Joined:Fri May 16, 2014 3:47 pm

Re: Separation from Wife... Remortgage...

Postby AGoodman » Mon Jan 09, 2023 12:39 pm

Yes, an agreement between you in order to sort out marital assets pre-divorce would meet the criteria. Strictly speaking it does not even have to be written down but something like the doc linked to by pawncob would be ideal for both tax and to avoid any future misunderstandings between you and your wife.


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