Stamp duty land tax on jointly owned property
Written by Ray Coman
Stamp duty land tax (SDLT) is payable by the purchaser, regardless of his or her residence, based on the consideration paid for UK based property. There is no stamp duty land tax on gifts. However the transfer of property into joint names, where there is also a reduction in mortgage, is not a straightforward gift. This is because one party has a reduced mortgage, as a result. Therefore, SDLT may be payable where one spouse acquires property, releasing the other spouse of a mortgage commitment. For instance, if one spouse transfers half a property and half a mortgage to their spouse, a liability to SDLT may arise.
The amount of debt taken on by the acquiring spouse is the consideration for SDLT purpose.
Please contact us for further tax advice related to your property.