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Where Taxpayers and Advisers Meet

SDLT on 50% BTL property

tax query
Posts:5
Joined:Thu Jan 27, 2022 3:09 pm
SDLT on 50% BTL property

Postby tax query » Thu Jan 27, 2022 3:13 pm

My friend and I own Buy to let residential property 50% each which we purchased for £400K (25% deposit and 75% mortgage). My friend wants to sell his 50% share. If my wife wants to buy the 50% share and if the property price now is £500K (25% deposit and 75% mortgage) how much stamp duty does my wife has to pay. Will it be 10K based on £250K or will it be £15K (half of £30K) based on £500K. When I calculate in the online calculator if I put purchase price £250K then SDLT shows £10K (3% X 125K + 5% X 125K), but if I put purchase price £500K then SDLT shows £30K (3% X 125K + 5% X 125K + 8% X 250K).

Will there be any SDLT I need to pay from my side because of the increase in the property price. Thank you for your time.

bd6759
Posts:4254
Joined:Sat Feb 01, 2014 3:26 pm

Re: SDLT on 50% BTL property

Postby bd6759 » Fri Jan 28, 2022 1:06 am

You wife will need to pay SDLT based on whatever amount she pays your friend. This includes cash to him plus the assumption of his share of the mortgage debt.

tax query
Posts:5
Joined:Thu Jan 27, 2022 3:09 pm

Re: SDLT on 50% BTL property

Postby tax query » Fri Jan 28, 2022 9:58 pm

How much will be the stamp duty payable if the total consideration to be paid by my wife for 50% share is £250K?

bd6759
Posts:4254
Joined:Sat Feb 01, 2014 3:26 pm

Re: SDLT on 50% BTL property

Postby bd6759 » Sat Jan 29, 2022 1:19 am

There are plenty of SDLT calculators out there.

tax query
Posts:5
Joined:Thu Jan 27, 2022 3:09 pm

Re: SDLT on 50% BTL property

Postby tax query » Sat Jan 29, 2022 10:59 am

Thank you. Can you please tell me If Stamp duty will be 10K based on £250K or will it be £15K (half of £30K) based on £500K. When I calculate in the online calculator if I put purchase price £250K then SDLT shows £10K (3% X 125K + 5% X 125K), but if I put purchase price £500K then SDLT shows £30K (3% X 125K + 5% X 125K + 8% X 250K).

bd6759
Posts:4254
Joined:Sat Feb 01, 2014 3:26 pm

Re: SDLT on 50% BTL property

Postby bd6759 » Sat Jan 29, 2022 11:27 pm

You need to decide if the purchase price is £250k, as you said yesterday, or 500k as you are saying now.

SDLT is payable only on the consideration paid.

Your wife is buying a share of a property. She needs to pay SDLT on that amount.

You aren’t buying anything so have no SDLT to pay. Or are you buying a further share too?

tax query
Posts:5
Joined:Thu Jan 27, 2022 3:09 pm

Re: SDLT on 50% BTL property

Postby tax query » Sun Jan 30, 2022 12:24 pm

Hi, it’s my wife buying 50% share for £250k. Thanks.

AGoodman
Posts:1734
Joined:Fri May 16, 2014 3:47 pm

Re: SDLT on 50% BTL property

Postby AGoodman » Mon Jan 31, 2022 3:43 pm

Just go here: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

and put in the details - your wife is paying £250k.

sounds (from what you have said) that the tax is £10k.

tax query
Posts:5
Joined:Thu Jan 27, 2022 3:09 pm

Re: SDLT on 50% BTL property

Postby tax query » Mon Jan 31, 2022 6:00 pm

Many thanks. Thats very helpful.


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