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Where Taxpayers and Advisers Meet

Stamp Duty Transfering Property From My Name to Joint Name with Wife

letterman
Posts:2
Joined:Wed Aug 06, 2008 3:04 pm

Postby letterman » Mon Aug 11, 2003 7:02 am

I have a property that is in my name only along with a mortgage that is only in my name.

I would like to transfer the property in to joint names with me and my wife and remortgage the property with the mortgage being in joint names.

Would this incur stamp duty?

letterman
Posts:2
Joined:Wed Aug 06, 2008 3:04 pm

Postby letterman » Mon Aug 11, 2003 7:25 am

Just to add, the existing mortgage in my name is £335k in my sole name, the property is worth about £500k and we want to remortgage for about £475k.

accountant@uktaxshop
Posts:550
Joined:Wed Aug 06, 2008 3:04 pm

Postby accountant@uktaxshop » Mon Aug 11, 2003 8:12 am

A gift between connected parties (i.e. from you to your wife) would be liable for stamp duty at the value of the consideration.

In your case this is the mortgage value transferred, or £167,500.

This would attract stamp duty at 1% i.e. £1,675.

A good solicitor should be able to transact this for you and confirm this is correct (I am not a stamp duty specialist, and there is a possibility it is the full mortgage value which is relevant, not the half share – I am not 100% sure without looking it up)

If you need a contact name please let me know.

Regards

James Smith
Chartered Accountant
www.uktaxshop.co.uk
01284 764436

paulc
Posts:33
Joined:Wed Aug 06, 2008 3:04 pm

Postby paulc » Mon Aug 11, 2003 8:59 am

It depends on exactly what is intended and the sequence of events.

If there is a transfer into joint names and your wife becomes jointly liable for the existing mortgage, James is correct that stamp duty is payable on half the existing mortgage. If however the transfer makes it clear that your wife takes over no responsibility to pay the existing mortgage and is not conditional on the new mortgage being entered, then the transfer is a gift and not subject to stamp duty. Provided the new mortgage does not happen simultaneously, the fact that there is a new mortgage should not affect the position, though I appreciate that in practical terms it may not be possible to split up the transaction into separate steps as I have suggested.

Paul


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