Stamp Duty When Divorcing and Buying Separate Home
Published / Last Updated on 31/03/2023
There are special provisions for stamp duty for divorcing couples or dissolving a civil partnership. These provisions do not apply if you are co-habiting only i.e., unmarried/not civil partners.
Property Adjustment Order
As part of the financial arrangements, your legal advisers may include a Property Adjustment Order as part of your Divorce Order. The order, granted by the Judge or Sheriff would include an order if partner A moves out of the main ‘marital’ home with partner B granted rights to stay in the property and partner A then buys another property to live in as their main home.
Stamp Duty With A Property Adjustment Order
- Normal stamp duty rates will apply to partner B when buying a new main residence.
Stamp Duty Without A Property Adjustment Order
- We urge you to task your legal advisers to ensure a Property Adjustment Order is in place but if there is not a Property Adjustment Order then normal stamp duty rates will not apply to partner B when buying a new main residence and the higher stamp duty levies in England and Northern Ireland (3% additional levy) or Scotland and Wales (4% additional levy) will apply.
- If partner B then subsequently sells their share of the original marital home within 3 years of completing on the 2nd purchase, you can make an application to reclaim the additional 3 or 4% levy paid.
- You must make this claim to HMRC withing 12 months of completing the sale of the 1st (former) marital home.
Other Links:
