Can the tax be reduced

[kennybond]

Hi
I have a client looking to go joint on a mortgage with his wife. She currently owns the property 100%. If the mortgage is in joint names can he reduce his 50% share of the ( unfair tax as paid already) SDLT if he was to take a reduced share of the property being registered at the land registry eg: 10% share. ( the mortgage will be in joint names )

[Leo Weinstein]

Kenny,

A transfer for no consideration between spouses would not give rise to a charge to SDLT unless there was a transfer of an existing debt. As the wife currently owns the property 100% (I am assuming this is debt free) she can gift 50% of the property to her husband free of SDLT.

They would then complete a remortgage in joint names as joint owners of the property and this would also not give rise to SDLT as it is simply a refinance.

If any of my assumptions are incorrect please let me know.

Regards,

Steven.

[Peter D]

No quite clear here what you are trying to achieve. However to own a property other then 50/50 you require the ownership to be Tenants in common where the share can be apportioned 99-1 to 1-99. As leo points out this is an interspousal transfer at no loss no gain although there can be an SDLT if there is a sizeable mortgage. What are you tring to achieve. Regards Peter