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Where Taxpayers and Advisers Meet

SDLT on part of 2nd property gifted to daughter

ollie
Posts: 11
Joined: Wed Aug 06, 2008 3:31 pm

SDLT on part of 2nd property gifted to daughter

Postby ollie » Sat Sep 22, 2018 10:22 pm

I have a second home, value £300,000 with outstanding mortgage of £100,000. I am considering giving a 10% part of the property to my daughter (who already owns a property as her main residence). Her name would appear on the mortgage. I understand the CGT implications but am not sure about SDLT liability and have taken a look through previous posts: would my daughter be liable for SDLT, at the 3% premium rate, on 10% of the mortgage i.e. on £10,000?
With thanks for any replies.

SDLT Geek
Posts: 147
Joined: Sun Apr 30, 2017 5:45 pm

Re: SDLT on part of 2nd property gifted to daughter

Postby SDLT Geek » Sun Sep 23, 2018 11:32 am

From what you say it is likely that the chargeable consideration is £10,000. Assuming there are no linked transactions then at this level there is no SDLT. The SDLT higher rates bite where the chargeable consideration is £40,000 or more.

ollie
Posts: 11
Joined: Wed Aug 06, 2008 3:31 pm

Re: SDLT on part of 2nd property gifted to daughter

Postby ollie » Thu Sep 27, 2018 9:30 pm

Many thanks SDLT Geek.
Ollie


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