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Where Taxpayers and Advisers Meet

Stamp duty on transfer between husband and wife.

someone
Posts: 312
Joined: Mon Feb 13, 2017 10:09 am

Stamp duty on transfer between husband and wife.

Postby someone » Mon Apr 16, 2018 11:04 am

To keep it simple:

Outstanding mortgage 150000. Owned solely by husband. Transfer of equity into joint names as tenants in common.

98% transferred to wife.

Is the SDLT calculated on:

150000*.98 = 147000 (440 SDLT due) - this is what I think it is

or

150000*.5 = 75000 (No SDLT due) - what HMRC have told my solicitors.


Obviously, I'd like HMRC to be right!

AGoodman
Posts: 359
Joined: Fri May 16, 2014 3:47 pm

Re: Stamp duty on transfer between husband and wife.

Postby AGoodman » Mon Apr 23, 2018 1:41 pm

My vote is the former - assuming you are going from 100% to 2% interest.

This is effectively self-assessment so I would check what information conveyancer provided to end up with the latter.

maths
Posts: 7283
Joined: Wed Aug 06, 2008 3:25 pm

Re: Stamp duty on transfer between husband and wife.

Postby maths » Mon Apr 23, 2018 2:51 pm

I assume the mortgage is in the transferor spouse's name only.

If on the transfer to the transferee spouse she assumes no liability for the mortgage and/or doesn't indemnify you for any part of it then there is no consideration and hence no SDLT payable.

someone
Posts: 312
Joined: Mon Feb 13, 2017 10:09 am

Re: Stamp duty on transfer between husband and wife.

Postby someone » Mon Apr 23, 2018 4:14 pm

Thanks both.

This is a transfer of equity putting the property (and the mortgage) into joint names.

I finally found (what I believe is) the relevant legislation that is a FA 2004 amendment to the FA 2003 that says that (I think) the liability for the debt for SDLT purposes follows the ownership proportion regardless of the actual liability.

So we've paid the 440.

We wanted my wife on the mortgage so she can claim the interest relief. The income tax savings in the first month (I'd be taxed at 67.5% effectively, my wife at 20%) will more than cover the SDLT charge.

I don't know what my solicitors asked HMRC - perhaps HMRC thought it was joint tenants (which AIUI the 2004 amendment was partly to clarify that it's 50% rather than 100% - legally both are responsible for 100% of the debt)

And I wanted to stay as (partial) owner as I will get some PPR should we sell eventually, my wife wont (unless at some time in the future we move back in) - currently we have no plans to sell ever but circumstances can change.


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