Stamp Duty for Separated Couple

[Michael John]

Hi, I separted last year and am living in an apartment I purchased last year.

My query is threefold:

1) If we sell the orginal familiy house and/or the apartment do we have to pay the full stamp duty on 2 new homes?

2) Would I have to pay capital gains on any gain on the apartment, which was never rented out?

3) Should I be able to claim mortgage interest relief on the apartment mortgage?

many thanks,

Michale John

 

[ClubMan]

might be of interest to you since it has implications for stamp duty and CGT liabilities for you and your ex:

Spouses who are separated or divorced are entitled to be treated as first-time buyers if they meet the following conditions:

• They are separated or divorced under a court order
• This is the first property they have purchased since leaving the family home
• The party purchasing has left the family home and retained no interest in it
• The other party has remained in the family home.

1) If we sell the orginal familiy house and/or the apartment do we have to pay the full stamp duty on 2 new homes?

Who lives there now? Who owns it? If the plan is to sell it and split the proceeds then, since it was (presumably) your joint Principal Private Residence (PPR) up to recently then there should be no CGT implications and you both may be able to retain your first time buyer status if the conditions above are met. If you have owned and lived in the apartment for more than a year now and will be receiving some of the proceeds of the former family home sale then there may be a partial CGT liability since your interest in the property may be deemed an investment property one.

2) Would I have to pay capital gains on any gain on the apartment, which was never rented out?

If it is your PPR then no.

3) Should I be able to claim mortgage interest relief on the apartment mortgage?

If it is your PPR then yes.