When is a married couple not a married couple?

Generally speaking, for the purposes of Stamp Duty Land Tax married couples are treated as one unit for tax purposes. Therefore if, for example, a wife purchased a property in her sole name and did not own any other properties personally, but her husband did, then her purchase would still be subject to the higher rates of SDLT for additional dwellings.

However, what happens in a situation where a marriage or civil partnership has broken down and one of the partners wishes to purchase a new home before both their divorce or separation is finalised and what was formerly their main residence has been sold or transferred? It would seem unfair if such a purchase was subject to the higher rates of stamp duty for additional properties not least as those rates do not apply when a main residence is being replaced regardless of how many additional properties are owned at that time. Thankfully, HMRC will now accept that the higher rates of Stamp Duty Land Tax will not apply in such circumstances and before a divorce or separation agreement has been finalised, providing that the couple are separating in circumstances that are likely to be permanent.

Therefore, the answer to the question “when is a married couple not a married couple?” is for the purposes of SDLT at least, somewhat logically, when they are divorced, separated by way of a formal agreement or in circumstances where the separation is likely to become permanent. Needless to say, in the latter instance, each case will turn on its own facts and one may need to substantiate the position to HMRC should it investigate the Land Transaction Return after completion of the purchase. It is always advisable to obtain bespoke legal advice in the early stages of any such situation.

Here at GoodyBurrett we can help with divorce matters as well as conveyancing, please feel free to contact a member of our family and/or conveyancing team for more details.