Stamp Duty Land Tax (SDLT) may apply when property is transferred between spouses or civil partners following separation or divorce.
However, transfers made under certain court orders are often exempt from stamp duty.
When Is Stamp Duty Not Payable?
No SDLT is usually payable when property is transferred between spouses or civil partners as part of a formal divorce or dissolution settlement approved by a court.
This includes transfers made under a court order or formal separation agreement.
When Might Stamp Duty Apply?
Stamp duty may apply if:
- The transfer is not made under a court order
- One party takes over a mortgage and gives chargeable consideration
- The transfer occurs outside formal divorce proceedings
Mortgage Considerations
If one spouse takes over responsibility for a mortgage as part of the transfer, the amount of mortgage debt assumed may count as consideration for SDLT purposes.
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