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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 9300
Experience:  FCCA FCMA CGMA ACIS
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Question regards Stamp Duty. I am separating from my husband

Customer Question

Question regards ***** ***** I am separating from my husband for a trial year, so not divorcing yet or formally separating. I am buying a flat for myself a hundred miles away in Surrey as I am returning to where I grew up. I am currently joint owner of our previous family home. Since the new flat will be my "main residence" completely - I am shifting all my GP, banking (getting new bank account anyway) and all commitments to Surrey - I would like to NOT have to pay the second home SDLT. My husband has decided to stay on in the previous home (in Glos) until we decide how the finances will be split if we stay separated and formalise. If I "sell" my half interest in the previous home to my husband before purchasing my flat, does this clear the way so that I can tick the box on the SDLT form that I am moving my new main residence and have no other interests in my previous main residence.
JA: Have you talked to a tax professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: Only to say that I do want to "bend any laws" only I am really moving out and starting life on my own so it doesn't seem correct to say this is my "second home" so I hope this will be the right thing to reflect the situation.
Submitted: 12 days ago.
Category: Tax
Expert:  bigduckontax replied 12 days ago.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

As you already own a dwelling anywhere else in the world you will be liable to the SDLT 3% surcharge on purchasing your Surrey residence. If you dispose of the duplicate dwelling within three years you can apply to the Stamp Office for a refund of the surcharge.

Customer: replied 12 days ago.
I wish to know whether transferring or selling my share of the "duplicate dwelling" to my husband fulfills the requirement of having disposed of it. I cannot afford to pay the £8000+ stamp duty and hope to get it back in a year's time (or longer) when the previous home is finally sold.
Expert:  bigduckontax replied 12 days ago.

Married couples count as a single person for SDLT.