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Where Taxpayers and Advisers Meet

Stamp Duty / Transfer of Equity / remortgage further borrowing

Howson
Posts:35
Joined:Wed Feb 13, 2013 4:14 pm
Stamp Duty / Transfer of Equity / remortgage further borrowing

Postby Howson » Tue Feb 27, 2018 5:33 pm

I don't believe any Stamp duty is due in this case, but with the recent changes would be grateful for a quick check over:

Property and mortgage in sole name of Husband - who is putting the property and mortgage into joint names with wife, and at the same time borrowing more:
Property value: £450,000
Current Mortgage : £146,000. There is also a mortgage reserve account which is being used: £47,000.
There is no actual 'cash' changing hands, but - further borrowing taking place via this remortgage of an additional £74,000, taking the total new joint mortgage to £267,000.
The extra borrowing for a mixture of purposes (Debt, Home improvements).

If I understand correctly the Stamp Duty Calc is simply:
£146,000 + £47,000 = £193,000 / 2 = £96,500.
So is below the £125k & no stamp duty charge ?


Thanks all,

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Stamp Duty / Transfer of Equity / remortgage further borrowing

Postby bd6759 » Tue Feb 27, 2018 6:17 pm

https://www.taxationweb.co.uk/forum/topic53467.html

Howson
Posts:35
Joined:Wed Feb 13, 2013 4:14 pm

Re: Stamp Duty / Transfer of Equity / remortgage further borrowing

Postby Howson » Thu Mar 01, 2018 3:05 pm

Thank you.
Would the further borrowing amount (which includes Debt consol & home improvements) also be part of the caluclation, or is it purely the mortgage balance + consideration in 'cash' only ?


Thanks,

Lee Young
Posts:2707
Joined:Wed Aug 06, 2008 3:26 pm
Contact:

Re: Stamp Duty / Transfer of Equity / remortgage further borrowing

Postby Lee Young » Wed Mar 07, 2018 5:23 pm

It is purely the existing mortgage amount that will determine the consideration for SDLT purposes in this situation.
Lee Young
Solicitor, Chartered Tax Adviser and Trust and Estate Practitioner


Partner, Frettens LLP
lyoung@frettens.co.uk
01202 491701


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