House purchase on separation

[monkey]

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?

[mutantpoodle]

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

[Chrysalis]

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.

[johnhemming]

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.

[PinkDalek]

Assuming the property is in England and Wales.

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.

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. ...

[johnhemming]

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.

[monkey]

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).

[PinkDalek]

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.

[Lanark]

Given the potential costs of getting it wrong, I would talk to a lawyer.

[88V8]

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

[mutantpoodle]

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

[swill453]

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.

[DrBunsenHoneydew]

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.

[mutantpoodle]

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