Hi,
I own a BTL property with my spouse as tenants in common. We are both on the mortgage which amounts to 360k. The declaration of trust our solicitor created after we bought it set our proportions to 50% each. Now, we would like to change this to 5% and 95%. We have created a new declaration of trust showing the new split and have prepared form 17 to send to HMRC. Given that the proportions are changing, do we need to create a SDLT report? As per the new declaration of trust, my wife is taking on 45% more ownership of the property. Does that mean that we need to create a SDLT report of 45% of the outstanding mortgage amount (162k)? As this is not our main home, that would mean a SDLT bill of 3% of this amount.
From the HMRC web site, it seems pretty clear that there is no SDLT due:
If the larger share is given outright as a gift
If you take a bigger share but don’t pay anything in return, there’s no ‘consideration’ given including taking on liability for a mortgage. You won’t pay SDLT, even if the value of the extra part of the share is more than the SDLT threshold. You don’t need to tell HMRC about the transaction.
However, I have read a lot of conflicting info on the above so would be great to get some clarification.
Many thanks in advance!
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