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Where Taxpayers and Advisers Meet

All transfers without consideration now exempt?

KarenF
Posts:54
Joined:Wed Aug 06, 2008 3:36 pm
All transfers without consideration now exempt?

Postby KarenF » Thu Jul 05, 2018 5:26 pm

Dear all,

I caught up with some new guidance on stamp duties, and it must have escaped my attention before: https://www.gov.uk/guidance/stamp-duty-land-tax-transactions-that-dont-need-a-return

My understanding was that transactions without consideration was previously SDLT exempt for inter-spouse transfer only, but now it appears to apply for all, regardless of the value of the asset (previously below 40K threshold would have been exempt)? Hence, one can now transfer an property of any value to anyone (for example, one's child) and they would not incur SDLT, it appears? Do correct my understanding, if I have overlooked something.

Thanks.

SDLT Geek
Posts:232
Joined:Sun Apr 30, 2017 5:45 pm

Re: All transfers without consideration now exempt?

Postby SDLT Geek » Sat Jul 07, 2018 10:49 pm

True outright gifts between family members are not liable for SDLT if there is no "chargeable consideration". Points to watch are:

1. Where there is debt involved, such as if a debt is forgiven as part of a transfer, or if liabilities change in respect of a third party debt (such as a transfer of a property subject to a mortgage).

2. The gift is to a company, where a market value rule applies.

3. The gift is to a partnership where complex rules apply.

4. There is in fact something given in return "I will gift you this house but you must gift me some money" or even "I will gift you this house but you must gift your sister some money".


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