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Where Taxpayers and Advisers Meet

Giving property as a gift to wife and mortgage outstanding

oravikiran
Posts:1
Joined:Thu Mar 01, 2018 5:04 pm
Giving property as a gift to wife and mortgage outstanding

Postby oravikiran » Thu Mar 01, 2018 5:11 pm

Hello All,

There is 180k mortgage outstanding in the property worth 400K which i own and would like to transfer the property completely to my wife and mortgage as well.

she can get mortgage of 180k , will there any stamp duty tax need to pay if i transfer the property to my wife.? if so how much will it be ? this is mortgage amount 180k or property worth 400k?

please let me know,

Thanks in advance

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

Re: Giving property as a gift to wife and mortgage outstanding

Postby RMC » Sat Mar 03, 2018 9:25 am

The 3% higher rate for additional dwellings (HRAD) is disaplied where an individual buys a property from their spouse or civil partner. So your wife will pay Stamp Duty only on the outstanding mortgage. Good that you worked out the feasibility of remortgaging the property.

Why not give her, subject to the mortgagees' permission, just one-half? That would be SD-free.


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