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Where Taxpayers and Advisers Meet

Stamp Duty - Unmarried Separation

andyk74
Posts:21
Joined:Thu Jul 02, 2009 9:58 am
Stamp Duty - Unmarried Separation

Postby andyk74 » Tue Jan 10, 2023 1:42 pm

Hi,

My partner and I have separated.

It has been agreed that I will buy out her interest in our joint owned property.

I will be paying her lump sum on transfer. We also have a joint mortgage - this is being settled by a gift from my family - so technically my partner is being released from her 1/2 share of the mortgage.

If we paid the mortgage off before the property was transferred would this give rise to a charge for stamp duty?

There would then be a subsequent transfer of the property with the lump sum payment to my partner that I understand would give rise to a charge for stamp duty. But if we pay the mortgage off prior to transfer do we avoid the charge to stamp duty on her 1/2 share of the mortgage that would have been paid off?

Many thanks

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