With the recent Budget, there have been some important changes to Stamp Duty.
When divorcing, if both parties retain an interest, however small, in the former family home, and one party seeks to buy a second home, there is additional stamp duty to pay.
If no interest is retained, stamp duty will still be payable at the higher rate unless the position regarding the property is made binding as part of a Financial Order within divorce proceedings.
This does not mean that the parties have to 'go to Court' as indicated in The Telegraph article. If an agreement is reached, this agreement can be recorded within a Consent Order and sent to the Court to approve. This does not require attendance at Court.
If you are divorcing or separating, please take legal advice on the potential financial implications on this and the purchase of another property.
For more information, please contact me:
t: 01722 446426
Although designed to target landlords, many divorcing couples found themselves caught out when one party came to buy a new home. A husband who wished to buy again but retain a stake in the marital home, in which his former wife and children remained, is one example. The November Budget included a special measure to help such people, giving exemption to the higher rate of duty where specific court orders related to the existing marital home.