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Stamp Duty & Life Events

Marriage, divorce, inheritance and family changes all affect your stamp duty. Know the rules before they catch you out.

Life events can cost or save you thousands

Getting married could lose you £5,000 in first-time buyer relief. A divorce transfer could be completely exempt. Understanding these rules before major life changes is essential.

£0

Divorce court order

£0

Inherited property

5%

Spouse owns property

36

Months refund window

Life Event Guides

May be exempt

Divorce & Separation

Property transfers under a court order are exempt from stamp duty. Learn about buyouts, the 36-month rule, and protecting your position.

  • Court order transfers are exempt
  • Private buyouts may incur SDLT
  • 36-month refund rule may apply
Affects eligibility

Marriage & Civil Partnership

Married couples are treated as one unit for stamp duty. Your spouse's property history affects your FTB status and surcharge liability.

  • Couples treated as single unit
  • Spouse's property = your property
  • Can lose FTB relief
Inheritance exempt

Inheritance & Bequest

Inheriting property is exempt from stamp duty, but it affects future purchases. Inherited shares over 50% trigger the surcharge.

  • No SDLT on inherited property
  • Affects future purchase status
  • 50%+ share = surcharge applies
Debt triggers SDLT

Gifting Property

Gifting property to family may still trigger stamp duty if there's an outstanding mortgage. The recipient pays tax on debt assumed.

  • Pure gifts are exempt
  • Mortgage debt = chargeable
  • Surcharge may apply to recipient
Plan carefully

Helping Children Buy

Parents helping children buy property need to understand joint ownership implications, gifted deposits, and guarantor arrangements.

  • Joint ownership = surcharge risk
  • Gifted deposits are fine
  • Consider guarantor instead
Timing matters

Retirement & Downsizing

Downsizing in retirement? If you own multiple properties or are buying before selling, the surcharge and refund rules apply.

  • Replacement main residence rules
  • 36-month refund available
  • Chain timing considerations
Separate assessment

Cohabiting Couples

Unmarried partners are assessed separately. One can buy as a first-time buyer even if the other owns, but joint purchase triggers the surcharge.

  • Each partner assessed independently
  • Joint purchase = surcharge risk
  • Sole purchase preserves FTB relief
Timing matters

Relocating for Work

Buying near a new job before selling your current home triggers the 5% surcharge. The 36-month refund window and sell-first strategies can help.

  • Buy before sell = 5% surcharge
  • 36-month refund available
  • Sell first to avoid entirely
Higher rates risk

Elderly Parent Moving In

Adding a granny annexe or buying a property with an existing flat has different stamp duty rules. The subsidiary dwelling exception could save you thousands.

  • Subsidiary dwelling exception may apply
  • No dependent relative relief exists
  • Separate property = 5% surcharge
Inheritance exempt

Death & Estates

Inheriting property is exempt from stamp duty, but it affects future purchases. The 50% beneficial interest threshold and 36-month disposal rule are key.

  • No SDLT on inherited property
  • >50% share affects future purchases
  • 36-month disposal rule
Timing matters

Redundancy & Buying

Stamp duty is property-based, not income-based, so redundancy does not change your SDLT bill. But timing your purchase affects mortgage affordability.

  • SDLT unaffected by income
  • First £30k redundancy is tax-free
  • Mortgage timing is critical
Plan ahead

Self-Employment

Self-employment does not change your stamp duty bill, but company vs personal ownership and mortgage timing have significant SDLT consequences.

  • SDLT same as employed buyers
  • 17% corporate rate vs personal rates
  • Mortgage timing affects purchase

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