Hi maths, thanks for taking the time to reply.
No CGT charge; see below. SDLT is in principle payable including the 3% additional charge.
As I suspected. If the size of the transfer is less than £125k (which it will be) then it looks like we still have to pay 3% because we are both names on 2 properties including this one
So here's a followup question - we are already Tenants In Common (50/50 Beneficial Interest) and will execute a new Declaration as part of the remortgage, as described above. As a reminder, this is an interest-only remortgage, slightly increasing the size of the mortgage. But how do I work out how much the SDLT is (roughly)? I believe the "Chargeable Consideration" is my wife will have a theoretical increase in mortgage liability from 50/50 to 99/1 - is that correct?
In which case, since we are increasing the size of the mortgage from X to Y as part of this process, which mortgage figure is relevant for working out the amount of Beneficial Interest being transferred? Also, presumably the current Beneficial Interest she already has (50% of current mortgage balance, X) is deducted when working out the size of the transfer?
Any references from HMRC or otherwise greatly appreciated!
Inter-spouse transfers precipitiate no CGT charge. I'm unclear if you have both owned the property from its purchase?
Thanks, I agree. Just to be clear, the property was initially owned by me for 3 years (purchased before we were married) and we lived in it. After 3y we were at this point married and we remortgaged it (approaching 2y ago) from capital repayment to interest only and let it out. At that point when we remortgaged it, we put my wife onto the new mortgage (Tenants in Common) and executed the Declaration of Trust that currently says we have 50/50 Beneficial Interest. At the time of this remortgage a Transfer of Equity was done so SDLT was discussed with the solicitor but was not payable (under the old rules!). If that changes any of your previous remarks please advise!