... but the same crazy tax is also hitting divorcees

In another unintended consequence, ex-partners may have to revisit ther divorce settlements. Olivia Rudgard reports

Thousands of divorce settlements could be left open to appeal because the Government’s new stamp duty surcharge is leaving estranged partners unable to buy their own home after a split. The new rules mean that a husband or wife who is granted an interest in a property, such as a buy-to-let or second home, after a divorce will be liable for thousands of pounds in extra tax when they buy their own home.

The surcharge, which was introduced in April, means that anyone who buys an additional property has to pay extra stamp duty of three percentage points on top of the existing tax liability for their property’s value.

The tax is particularly likely to affect women who lived with a husband but did not have a stake in the marital home and who are granted other property in a separation.

The law allows anyone who sold their main home within the past three years – or, currently, before November 2015 – to buy a new one without paying the extra tax. However, a quirk means that if you didn’t have a previous main home to sell, you are liable for the extra tax.

It will also affect couples where one partner moves out of a home but retains a stake in it.

This individual would then be subject to the extra tax on a new house. They will only be able to claim a refund if the separation is “likely to be permanent” and the first home is sold within three years.

Experts said divorce lawyers were largely in the dark about the law, so the tax is not being factored in.

This could leave settlements open to appeal, as a spouse can argue that they have been unfairly disadvantaged by the tax, which can add thousands to the cost of a home.

On a property worth £300,000, it means an extra £9,000 in tax liability.

John Pratley, a family lawyer at Simpson Millar Solicitors, said divisions in which one partner got a buy-to-let property and the other the family home were common.

“Because buy-to-let properties are widespread, people really do need to get advice about this and be very careful,” he said.

“Where people have buy-to-let properties it is common to transfer them [to the other spouse], so I can see this causing a problem.”

Other cases could involve settlements made before the extra tax was announced in November.

Here there are likely to be fewer grounds for appeal, as the law was not known about when the settlement was made.

Elizabeth Hicks, a family lawyer at Irwin Mitchell Solicitors, said anyone in this situation could sue their solicitor, or go back to court to have the settlement thrown out.

“Unless the settlement was made on the assumption that she would sell the properties, she could look at setting aside the original order on the basis that this tax wasn’t taken into account,” Ms Hicks said.

“This tax is not widely known about, especially among lawyers who don’t deal with it on a day-to-day basis.”

Telegraph Money has previously reported on the mass confusion among solicitors and accountants over the working of the new law.

Have you been caught by the tortuous new stamp duty rules? Let us know: olivia.rudgard@telegraph.co.uk

Some settlements may have to be revised as a result of stamp duty changes