SDLT - cohabiting couple separating - 2 properties

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Gordon999
    replied
    You & ex-Partner are joint owners of 2 properties and intend to exchange 50% in Main Home for 50% in BTL Property and difference in values will be paid by ex-partner to you.

    You should approach a couple of local law firms which offers both divorce and conveyancing services and ask for their quote for your property exchange situation.

    Leave a comment:


  • MrShed
    replied
    floehopper,

    No - I'm not sure what in my post made you think that but apologies if it did. SDLT will treat these as two separate transactions. SDLT, unlike CGT or similar, isnt interested a "net" position, its interested in specific transactions.

    I dont believe the market values of the properties are significant for SDLT - they may/will be for CGT.

    Leave a comment:


  • floehopper
    replied
    jpkeates Thanks. I will either take out a new non-BTL mortgage on the rental property or pay off the mortgage entirely. Am I correct in assuming that neither of these scenarios will have any effect on the SDLT calculations?

    Leave a comment:


  • floehopper
    replied
    MrShed Thanks. Does that mean that this is all regarded as a single transaction for SDLT purposes? In some sense the lump sum payment is the *net* result of a payment by me to my ex for the share in the BTL and a larger payment from my ex to me for the share in the main home. Can you reassure me that these payments are not taxed separately and it is only the net figure that is important? Also is the market value of the properties significant in any way?

    Leave a comment:


  • jpkeates
    replied
    It may be possible for your wife to "take on" the mortgage for the main home, but it won't be possible (I would have thought) for the OP to take on the BTL mortgage - the lending rules don't normally allow BTL lending to convert to other lending.

    Leave a comment:


  • MrShed
    replied
    - your SDLT liability is based on the value of half
    of the mortgage outstanding on the BTL
    - your partners SDLT liability is based on the value of half of the mortgage outstanding on your main home, plus the cash lump sum she is paying you.

    She may also have CGT implications on the BTL bear in mind.

    Leave a comment:


  • floehopper
    started a topic SDLT - cohabiting couple separating - 2 properties

    SDLT - cohabiting couple separating - 2 properties

    My ex-partner & I own two properties, one is our main home and the other is a buy-to-let. We own both properties jointly and have a joint mortgage on both.

    The plan is for me to take on ownership of and the mortgage for the buy-to-let property and to move into it as my main home. My ex-partner will take on ownership of and the mortgage for our former main home.

    Our main home is worth more than our buy-to-let property and my ex-partner will make a lump sum payment to compensate me for the difference.

    How do we calculate SDLT on all this?

Latest Activity

Collapse

  • Capital Gains Tax dilemma
    by Ollyn
    Hello

    I am considering whether to sell my house which has been let for some time and need to see how I can best deal with CGT.

    I lived in the property from 1984 until 2006.

    From 2006 it has been occupied by tenants, now vacant and being renovated.

    ...
    18-05-2022, 18:17 PM
  • Reply to Capital Gains Tax dilemma
    by Gordon999
    You have owned the property for 38 years ( 1984 - 2022 ) and lived in the property for 22 Years ( 1984-2006 ) plus 16 years for letting..

    The total capital gain over 38 years is apportioned between "residence period" ( exempt for cgt ) and "letting period" ( liable...
    19-05-2022, 10:07 AM
  • Reply to Capital Gains Tax dilemma
    by ash72
    You should seek advice from an accountant, or a property tax for tailored advice to your specific circumstances, you may be entitled to some relief if the property at any time was your own principal residence.
    18-05-2022, 21:14 PM
  • Reply to Capital Gains Tax dilemma
    by theartfullodger
    You declare (online) and pay CGT within 60 days of sale. Depending on the numbers I would expect you to pay CGT. What records do you have of applicable costs, etc?

    What you pay will depend on what CGT rules when you sell - v unlikely to be better than today, possibly worse. Covid,...
    18-05-2022, 18:29 PM
  • Reply to Tax Allowance on Rental Income.
    by Gordon999
    The property allowance is a tax exemption of up to £1,000 a year for individuals with income from land or property.

    If you own a property jointly with others, you’re each eligible for the £1,000 allowance against your share of the gross rental income.

    If your annual gross...
    18-05-2022, 16:47 PM
  • Tax Allowance on Rental Income.
    by banner257
    Can anyone help please, if a rental property is owned by two people 50 50. Would each owner be allowed to claim tax relief of £1000 each, or will the allowance of £1000 be split 50 50.
    Thanks
    18-05-2022, 08:42 AM
  • Reply to Tax Allowance on Rental Income.
    by jpkeates
    It's £1,000 each.

    Most landlords don't use this though, because it's rare for income from a rental property to be low enough to qualify,
    18-05-2022, 09:59 AM
  • Reply to Consent to Let - do we still need to pay tax
    by Madmax86
    Rent is income. All income needs to be declared, regardless of the mortgage you have
    18-05-2022, 08:50 AM
  • Consent to Let - do we still need to pay tax
    by VIKKI99
    Hi, For kids school - we need to let out our Own House and move to a rental property close to school.
    The rental money I receive from my tenants is exactly same as rent I pay on my property where I am a tenant.
    Question : Rental money I receive from Tenants - should it be considered as income...
    18-05-2022, 01:07 AM
  • Reply to Consent to Let - do we still need to pay tax
    by theartfullodger
    The clue is in the name. INCOME tax. Make sure you keep all relevant records, possibly say 30 years , for CGT which on current rules you will probably pay when eventually sold. But yes, self assessment income tax to be comply and paid, online. Do you have registration for government gateway?
    ...
    18-05-2022, 07:26 AM
Working...
X