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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am separated from my husband who is living in the jointly

Resolved Question:

I am separated from my husband who is living in the jointly owned marital home for which I am paying all outgoings including the mortgage. We will continue to remain joint owners.I am about to purchase a new property jointly with my partner which will become my main residence.Do I have to pay the additional 3% stamp duty surcharge. My understanding is that as I will be replacing my main residence this should not apply.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.

Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your question...

Based on what you have stated my understanding is you will be replacing your main residence but you would still remain joint owner of the jointly owned marital home after the purchase.

This being the case, you would own two properties at the end of the day of the transaction.

Your purchase would be subject to the higher rate of Stamp duty. If your marital home (previous main residence) was sold within 18 months of this purchase then you would be entitled to a refund of higher rate.

More information on this is covered in Figure 1 below section 2.2 here

https://www.gov.uk/government/consultations/consultation-on-higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties/higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Please only rate my answer if it is acceptable.

Customer: replied 1 year ago.
My understanding was this was not intended for separating couples. I could have in place a deed of separation.
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply..

A deed of separation would be helpful. This means that the couple do not have to yet be divorced for one of them to purchase a new home without paying the 3% surcharge as the new property would be in replacement of their main residence.

More information on this can be found here

http://www.wilsonbrowne.co.uk/separated-couples-and-the-additional-stamp-duty-rates/

I hope this is helpful and answers your question..

Expert:  taxadvisor.uk replied 1 year ago.

Hi there

Just checking to see if you need further clarification on points raised by you.

Many thanks

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Expert:  taxadvisor.uk replied 1 year ago.

I thank you for accepting my answer.

Best wishes.