SDLT Transfer of Equity

[gaggarwal1981]

My wife and I own our mortgaged property purchased in 2009 that we currently live in.

I also own a second property purchased in 2007 which is my buy to let. As I am a higher tax rate payer, I decided to transfer 50% equity to my wife who is a lower tax rate payer to be more tax efficient. There will be no cash exchange.

The property purchase price was £174K, it is now valued at £203K with an outstanding mortgage of 120K.

I have been advised by solicitor that my wife will have to pay 3% on the full outstanding mortgage whereas my accountant has advised me that my wife will only have to pay 3% on her share of the mortgage meaning 3% of 60K.

I have called HMRC and the advisor advised me that they have not come across this scenario before which seemed odd to me. They requested I write to Birmingham Stamp Office.

I would welcome any advice or guidance regarding whether stamp duty is liable and at what rate.

Kind Regards,

Aaron.

[maths]

Unless provided otherwise she will be assumed to have effectively taken on 50% of the mortgage and this is the amount upon which SDLT is charged.