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House purchase on separation
House purchase on separation
My wife and I decided to separate last year, and it's been very amicable. Neither of us is at fault and we agreed how to split everything without any squabbling.
We both continued to live in the marital home while it was on the market. When it sold, my wife completed the purchase of a new house I've temporarily moved in with a relative.
We noticed that, as part of her purchase, my wife had to sign a declaration to the effect that I don't own any property. Assuming I'll be asked to make a similar declaration when I buy, what are the implications of her owning her own home?
We both continued to live in the marital home while it was on the market. When it sold, my wife completed the purchase of a new house I've temporarily moved in with a relative.
We noticed that, as part of her purchase, my wife had to sign a declaration to the effect that I don't own any property. Assuming I'll be asked to make a similar declaration when I buy, what are the implications of her owning her own home?
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- Lemon Quarter
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Re: House purchase on separation
I am no expert but am in similar situation.
so question 'separated' or 'divorced' ???
its certain to be linked to a Stamp Duty position in respect of property being a second property or not
but I will watching this thread for other better informed replies for my benefit also
so question 'separated' or 'divorced' ???
its certain to be linked to a Stamp Duty position in respect of property being a second property or not
but I will watching this thread for other better informed replies for my benefit also
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- Lemon Slice
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Re: House purchase on separation
Yes, I believe married couples can’t get around the second home stamp duty by having one house each. I’m not sure whether that changes in the case of legal separation.
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- Lemon Quarter
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Re: House purchase on separation
AFAIK there is a period during which you can sell one property that you own having bought a second without paying extra stamp duty, but if you don't hit the deadline you end up having to pay the extra stamp duty.
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- Lemon Half
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Re: House purchase on separation
Assuming the property is in England and Wales.
At that stage, if I've read your post correctly, you were living with your wife. Thus the question to be answered.
If you are now divorcing or legally separated then the question might not be relevant. Annoyingly, I can only find the SDLT1 guidance https://www.gov.uk/government/publications/sdlt-guide-for-completing-paper-sdlt1-return/guide-for-completing-paper-sdlt1-returns but not the return itself.
I thought one has to pay the extra SDLT but apply for a refund if applicable.
https://www.gov.uk/guidance/stamp-duty-land-tax-online-and-paper-returns#refund
Higher SDLT rates for additional properties
If you sell or give away your previous main home within 3 years of buying your new home you can apply for a refund of the higher rate part of your SDLT bill. ...
monkey wrote:We noticed that, as part of her purchase, my wife had to sign a declaration to the effect that I don't own any property.
At that stage, if I've read your post correctly, you were living with your wife. Thus the question to be answered.
Assuming I'll be asked to make a similar declaration when I buy, what are the implications of her owning her own home?
If you are now divorcing or legally separated then the question might not be relevant. Annoyingly, I can only find the SDLT1 guidance https://www.gov.uk/government/publications/sdlt-guide-for-completing-paper-sdlt1-return/guide-for-completing-paper-sdlt1-returns but not the return itself.
johnhemming wrote:AFAIK there is a period during which you can sell one property that you own having bought a second without paying extra stamp duty, but if you don't hit the deadline you end up having to pay the extra stamp duty.
I thought one has to pay the extra SDLT but apply for a refund if applicable.
https://www.gov.uk/guidance/stamp-duty-land-tax-online-and-paper-returns#refund
Higher SDLT rates for additional properties
If you sell or give away your previous main home within 3 years of buying your new home you can apply for a refund of the higher rate part of your SDLT bill. ...
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- Lemon Quarter
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Re: House purchase on separation
I was discussing the issue with someone who has recently got divorced yesterday which is why I thought it was a question of initially not paying and having to finish off the transaction. I don't know what the details are on this.
Re: House purchase on separation
We haven't begun divorce or legal separation proceedings and continued to live together until last week when our house was sold (albeit in separate bedrooms for the last year or so).
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- Lemon Half
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Re: House purchase on separation
johnhemming wrote:I was discussing the issue with someone who has recently got divorced yesterday which is why I thought it was a question of initially not paying and having to finish off the transaction. I don't know what the details are on this.
Me neither but there's something below involving consent court orders which may not help the OP but might be what you were discussing:
https://www.crippspg.co.uk/tax-traps-on-separation-and-divorce/
All too complicated for me. Hopefully those in the know will arrive soon to assist the OP.
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- Lemon Quarter
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Re: House purchase on separation
Given the potential costs of getting it wrong, I would talk to a lawyer.
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- Lemon Half
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Re: House purchase on separation
I read without much attention a recent article where it mentioned that the period allowed for the sale of the main residence was being substantially cut. Currently it's three years.
Can't find the article, if it was in The Times it's been used to light the stove, but a solicitor should know.
If the period is exceeded the extra 3% cannot be reclaimed.
V8
Can't find the article, if it was in The Times it's been used to light the stove, but a solicitor should know.
If the period is exceeded the extra 3% cannot be reclaimed.
V8
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- Lemon Quarter
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Re: House purchase on separation
they will find aa way to get you!
despite me not being on the deeds at all our house is 'deemed' to be part owned by me as we are married
so despite separation HMRC require me to pay extra SDLT if/as/when I buy a property
despite me not being on the deeds at all our house is 'deemed' to be part owned by me as we are married
so despite separation HMRC require me to pay extra SDLT if/as/when I buy a property
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- Lemon Half
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Re: House purchase on separation
mutantpoodle wrote:they will find aa way to get you!
despite me not being on the deeds at all our house is 'deemed' to be part owned by me as we are married
so despite separation HMRC require me to pay extra SDLT if/as/when I buy a property
In your post on another thread you said you're getting the house put in your name as a result of your separation. So in any case it seems fair that HMRC take that view.
Scott.
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- Lemon Slice
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Re: House purchase on separation
88V8 wrote:I read without much attention a recent article where it mentioned that the period allowed for the sale of the main residence was being substantially cut. Currently it's three years.
Can't find the article, if it was in The Times it's been used to light the stove, but a solicitor should know.
If the period is exceeded the extra 3% cannot be reclaimed.
V8
I think there is a proposal to reduce the sale-of-first-home window to 18 months.
It is already restricted to that time for the equivalent of Stamp Duty in Scotland.
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- Lemon Quarter
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Re: House purchase on separation
FAO Scott
yes that was a plan, but as soon as it was suggested the solicitors told me it wouldnt work as we had hoped
they get you either way
yes that was a plan, but as soon as it was suggested the solicitors told me it wouldnt work as we had hoped
they get you either way
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