Virtually unknown stamp duty loophole that means you pay TWICE – and who can avoid it
A VIRTUALLY unknown stamp duty loophole could leave you paying the tax twice.
Cohabiting homeowners who buy their partner out following a separation may find themselves hit with the land tax more than once.
1
Stamp duty is, typically, a one-off payment you make if you buy a property or piece of land over a certain price in England and Northern Ireland.
But if you bought a property with a partner and you're unmarried, you might have to pay stamp duty again if you break up and want to buy their share of the property.
You'll only avoid paying it if the transfer is part of a formal divorce or separation agreement.
The extra stamp duty you might have to pay depends on how much is left on your mortgage and the equity in your property (the part of your home you've already paid off).
You'll only have to pay stamp duty again if the "chargeable consideration" is more than £125,000.
The "chargeable consideration" is the total value of what you're taking on to own the property, such as the remaining mortgage and any equity.
For example, if you pay your ex-partner £100,000 for their share of the equity and take on £200,000 of their mortgage, the total "chargeable consideration" would be £300,000.
In this case, you would need to pay stamp duty on £175,000, which is the amount above the £125,000 threshold for residential properties.
The rules about paying stamp duty after separating from a partner can be tricky, so it's a good idea to speak to a solicitor or tax advisor to work out exactly how much you owe.
Keep in mind that you will likely need to pay for their services.
The Sun's James Flanders explains how to find the best deal on your mortgage
Simon Nosworth, partner at Osbornes Law, said: "If you're married you can be sheltered from having to pay stamp duty upon divorce when you're splitting up assets like a mortgage.
"This is because you've got protection under the Finance Act.
"However, if you're unmarried you don't have this protection.
"Broadly it is unfair, but there is no way around it."
What is stamp duty?
STAMP duty land tax (SDLT) is a lump sum payment anyone buying a property or piece of land over a certain price has to pay.
You pay the tax when you:
Buy a freehold property
Buy a new or existing leasehold
Buy a property through a shared ownership scheme
Land is transferred to you or property in exchange for payment, for example, you take on a mortgage or buy a share in a house
The rate you pay depends on the price and type of property and certain thresholds.
If you are a first-time buyer no stamp duty is due if the property is worth £300,000 or less.
You'll also get a discount if the purchase price is £500,000 or less and will only pay 5% SDLT on the portion from £300,001 to £500,000.
Those who aren't first-time buyers will pay different rates depending on the value of their new home:
If it's up to £125,000 - no stamp duty is paid
For the next £125,000 (the portion from £125,001 to £250,000) - stamp duty is charged at 2%
For the next £675,000 (the portion from £250,001 to £925,000) - stamp duty is charged at 5%
For the next £575,000 (the portion from £925,001 to £1.5 million_ - stamp duty is charged at 10%
For the remaining amount (the portion above £1.5million) - stamp duty is charged at 12%
You'll usually have to pay 5% on top of SDLT rates if buying a new residential property means you'll own more than one.
An HMRC spokesperson said: "Stamp duty in these cases may only be payable on the share purchased, not on the total value of the property."
How to pay the stamp duty
You have to pay stamp duty within 14 days of any transaction date.
If the deadline is on a weekend or bank holiday, you need to make sure your payment reaches HMRC by the end of the previous working day.
You will need your 11-character unique transaction reference number to hand.
This reference will always be made up of nine numbers and two characters (for example, 123456789MC).
You can find this on your paper return or on your electronic SDLT5 certificate.
You can pay online by clicking on the "pay now" button found via www.gov.uk/guidance/pay-stamp-duty-land-tax.
You can also pay by cheque, but must allow three working days for your payment to reach HMRC.
Make your cheque payable to "HM Revenue and Customs only" and write your reference number on the back.
If you've filed a paper return, you need to complete the payslip and send this with your cheque to:
BT Stamp Duty Land Tax
HM Revenue and Customs
BX9 1LT
Send your cheque (including a payslip or quoting the unique transaction reference) to:
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
43 minutes ago
- The Sun
Amazon shoppers rush to buy ‘stylish powerhouse' £140 MagSafe portable charger – now just £27
I'VE tested my fair share of portable chargers, and this one ticks all the right boxes. The Aobbow MagSafe Power Bank is on sale right now, down 81% from £139.99 to just £26.99, and it has everything you need. Aobbow MagSafe Power Bank, £139.99 £26.99 BUY FROM AMAZON Amazon's no stranger to solid tech deals, but this one feels like it's punching well above its price tag. For under thirty quid, you're getting a 10,000mAh portable charger that's slim, travel-friendly, and loaded with features. It supports wireless charging and comes with two built-in cables, one Type-C and one Lightning, as well as two additional ports. That's a rare combo, and a design you usually only see in premium models that cost two or three times as much. Now, let's be honest, £139.99 may have been stretching it a bit. But £26.99 is a real bargain for what you're getting here, and it's the kind of deal I wouldn't think twice about if you need a reliable power bank. I've tested plenty of chargers in search of the best power banks out there, and this one hits that sweet spot between practicality and price. It's compact, lightweight, and genuinely useful for everyday life, whether that's commuting, travelling, or just for a quick top-up on the go. And I'm not the only one who thinks so. The reviews on Amazon are overwhelmingly positive, with a near-perfect 4.9-star average and hundreds of buyers singing its praises. I haven't had this one in my hand yet, but in my opinion, it has everything I'd want in a portable charger. It's designed with iPhones in mind, supporting wireless charging from the 12 series all the way up to the latest iPhone 16 models. It even sticks to MagSafe-compatible cases, so it stays put while it charges. If you're not clear on the mechanics of wireless charging, our tech experts have a straightforward guide on how iPhone wireless charging works. But the Aobbow is far from limited to Apple gear, it supports wireless charging for Android phones, tablets, and other USB-C devices. The built-in display shows you exactly how much charge is left, which is a small touch that makes a big difference. And when you make full use of it, you can juice up to five devices at once, so it's great for family trips or group travel. People who've bought it seem genuinely impressed. One reviewer called it a 'stylish powerhouse,' adding, 'It gave my iPhone 15 about 50% juice in just 30 minutes. 'The 10,000mAh capacity easily delivers 1.5–2 full charges depending on your model.' Another praised its convenience, saying, 'It snaps right onto my phone and charges fast with the 20W. 'The built-in cables are a great bonus, and it's compact enough to carry daily. Great design, fast charging, and no hassle.' If you're after a reliable, well-equipped power bank that won't cost a fortune, this one's worth grabbing while it's around.
BBC News
2 hours ago
- BBC News
Illegal work arrests double in year as police target 'unscrupulous' employers
Arrests for illegal work have doubled in a year as police focus on "unscrupulous" employers who exploit undocumented migrants, the government officers arrested more than 6,400 people in the past year in raids at businesses across the UK, data released by the Home Office shows. It said the figure is 51% higher than the previous year. It did not provide numbers as to how many arrests led to charges, convictions or said immigration enforcement officials had "intensified" their work to "tackle those abusing the UK immigration system and exploiting vulnerable people". Officers had visited more than 9,000 businesses - among them restaurants, nail bars and construction sites - to check paperwork and working businesses had often subjected migrants to "squalid conditions and illegal working hours" as well as below-minimum Home Office said there were a range of industries exploiting migrant one case in Surrey, officers arrested nine people at a caravan park who had been working as delivery one one major operation in March, officers arrested 36 people at a building site in Belfast's Titanic Quarter. Some had breached visa conditions while others didn't have working Enforcement director Eddy Montgomery said there were many cases where people travelling to the UK were "sold a lie by smuggling gangs that they will be able to live and work freely in the UK."In reality, they often end up facing squalid living conditions, minimal pay and inhumane working hours," he Angela Eagle, the minister for border security and asylum, said the government would "continue to root out unscrupulous employers and disrupt illegal workers who undermine our border security".The government said it had also returned nearly 30,000 people over the past year who did not have the right to be in the has said it is cracking down on illegal migration, setting out its plans in a White Paper to tighten work visas and those overstaying. It scrapped a special visa for care workers introduced during the pandemic, noting that this had been a pathway exploited by was mixed reaction to the plans, with some business sectors decrying the restrictions on work visas, while some Conservative opponents said the reforms didn't go far enough to stop illegal most recent data shows that approximately 44,000 people have entered the UK illegally in the year to March 2025, more than 80% through small boat journeys.
Daily Mail
3 hours ago
- Daily Mail
Trans lobby groups 'lied for years' that anyone self identifying as a different gender could access women's' toilets, equality chief says
Transgender people were misled about their rights to female only spaces by lobby groups, according to a senior member of an equality watchdog has said. In April a Supreme Court ruling confirmed the terms woman and sex in the 2010 Equality Act 'refer to a biological woman and biological sex'. Akua Reindorf, a barrister who is one of eight commissioners at the Equality and Human Rights Commission (EHRC), said trans people had been deceived about their rights were. Speaking in a personal capacity during a debate about the recent ruling, she said there must be a 'period of correction' to acknowledge women's right to women-only spaces. The decision made it legal for trans people to be banned from women-only sports teams, and from using bathrooms and changing rooms for the gender they lived as. These terms were later supported by interim non-statutory advice given by the EHRC last April. When an audience member at the debate raised fears about the recent Supreme Court ruling and how it could strip away trans peoples rights, barrister and panellist, Naomi Cunningham said: 'It can't be helped, I'm afraid.' In agreement with her fellow panellist, Ms Reindorf said she believed trans lobbyists were at faults for the misunderstanding. 'Unfortunately, young people and trans people have been lied to over many years about what their rights are,' she said. 'It's like Naomi said – I just can't say it in a more diplomatic way than that. They have been lied to, and there has to be a period of correction, because other people have rights' She claimed it boiled down to the law prior to the Supreme Court ruling being misunderstood due to groups contending trans people who self-identified should be treated as their preferred gender. However, this was only the case for the those who had obtained a gender recognition certificate (GRC). The barrister said the amalgamation of different rights made the Equality Act nonviable from a personal capacity. 'The catalyst for many to catch up, belatedly, with the fact that the law never permitted self-ID in the first place,' she said. As such, the feeling of a loss of right of trans people was due to an overwhelming product of 'misinformation' perpetrated by 'lobby group and activists'. Author JK Rowling backed the barrister's recent comments, saying lobby groups lied 'about what the law said'.' However, the head of gender justice at Amnesty International UK, Chiara Capraro, hit back Ms Reindorf's comments. She said: 'The EHRC has the duty to uphold the rights of everyone, including all with protected characteristics. We are concerned that it is failing to do so and is unhelpfully pitting the rights of women and trans people against each other.' A spokesman for the EHRC told The Guardian: 'Akua Reindorf KC spoke at this event in a personal capacity. This was made clear at the event and in the video recording published online. 'As Britain's equality regulator, the Equality and Human Rights Commission upholds and enforces the Equality Act 2010 to ensure everyone is treated fairly, consistent with the Act. 'Our board come from all walks of life and bring with them a breadth of skills and experience. This helps us take impartial decisions, which are always based on evidence and the law.'
