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Where Taxpayers and Advisers Meet

Stamp Duty on Gifted BTL Property

Sak81
Posts:2
Joined:Thu Jan 16, 2020 10:02 pm
Stamp Duty on Gifted BTL Property

Postby Sak81 » Wed Jan 22, 2020 4:21 pm

Hi All

Would like some advise please.

I own a BTL property with 2 of my siblings (so 3 owners in total).
The property is owned in equal shares (i.e. 33.3% each).
One of my siblings wants to dispose of his share in the property by gifting it to me and my brother.
The property has a mortgage of £335K.
Both me and my brother have second homes.

Questions
1. Given the property has a outstanding mortgage, is the stamp duty calculated on the full amount (£335K) or on the share that is being gifted (i.e. 1/3 of £335K = £111K)? 
2. Given me and my brother own other properties, is the stamp duty rate based on the normal rates or the surcharge rates? I assume surcharge rates but i am asking the question given i already own a share of the property and this is a gift rather than a purchase.

Kind Regards

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: Stamp Duty on Gifted BTL Property

Postby jerome.lane » Thu Jan 23, 2020 2:16 pm

You will be assuming the finance so each of you will be liable to SDLT at 3% on £55,833 or so. The seller will also need to consider CGT.
Jerome Lane
Tax Adviser
Telephone: 07943 005902


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