Stamp duty land tax on jointly owned property

Published: 22 Feb 2014

 

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.

Comments  

#4 Raphael Coman, FCCA, CTA 2018-10-11 11:57
Mark,
SDLT queries are the expertise of a solicitor. A gift is exempt from SDLT. But a mortgage isn't a straightforward gift. Consideration for this purpose would likely be the value of the mortgage transferred. Please seek separate legal advice on Stamp Duty Land Tax.

If the property you are transferring is your home (or principal private residence -PPR) this is exempt from CGT. There is one PPR per person or per married couple.

If the property is not your home, the transfer will not give rise to CGT. Transfers between spouses are exempt. The transfer of a property which is not your home could save you tax as a couple as you would both have use of annual exemption when the property is disposed of. If the property used to be your home, your wife may not be entitled to PPR relief if she didn't live there. A possible pitfall is transferring a property that you have lived in but your wife has not.

Ray
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#3 Mark Spooner 2018-10-11 11:57
I am looking for some property tax advice and for a new accountant going forwards. My specific questions are around, having recently gotten married, whether it is beneficial to transfer part of my property into my wife's name and whether SDLT would be due as there is a mortgage.

Regards,

Mark Spooner
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#2 Ray Coman, FCCA, CTA 2016-03-22 12:32
There is usually no stamp duty payable on a gift
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#1 Maroula A Lois 2016-03-21 13:49
Is stamp duty not paid on a free gift to my children? There is no mortgage on the property. Is it best to transfer it before 31st March 2016?
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