A recent advisory mandate left us scratching our heads as the judge ruled that a divorcing client moving out of the family home wouldn’t receive any specific help with SDLT. You can make a case for a new set of teaspoons it would seem but when it comes to finding the huge slug of SDLT payable on the purchase of a relatively modest new home in London with room for the kids to stay, you’re on your own!
On top of this, the November Budget’s attempt to redress the situation where a divorcing party moving out of the family home but retaining a share in it (perhaps an interim arrangement until children fly the nest?) would get nobbled with the extra 3% SDLT payable on purchases of additional properties, has fallen somewhat short. HMRC confirms that, in order to avoid this, the parties need a formal “property adjustment order” – expensive and irritating for couples who have chosen to divorce amicably outside the court system.
Surely time for a rethink?
At RFR, we are proud of our work helping divorcées and divorcés make the best property-related decisions for themselves and their families:
• sourcing alternative options to buy or rent (and overseeing negotiations, due diligence and the transactional process);
reviewing valuations; and
• advising on projects/interior design to make new homes work, whatever the circumstances.
If you have any comments or questions on the above, please do contact us.
020 3871 5800