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Where Taxpayers and Advisers Meet

SDLT on multiple transfers.

someone
Posts: 371
Joined: Mon Feb 13, 2017 10:09 am

SDLT on multiple transfers.

Postby someone » Tue Jul 09, 2019 7:06 pm

I bought a property for 375K and paid SDLT on the purchase.

I transferred 98% to my wife and we paid SDLT on the transfer. (outstanding mortgage was 150K)

The remaining mortgage is now around 125K. Lets assume her 98% share is worth exactly 125K

If my wife transfers her 98% back and then I transfer it back to her a few days or weeks later would there be any extra SDLT to pay?

I know it sounds ridiculous. These transfers have absolutely nothing to do with tax.

I'm unclear how the SDLT is calculated when I "rebuy" the extra 98%.

Do I have to say original purchase price of my 2% was 7500. Plus 125000 means total of 132500 which means SDLT due? I could pay off enough of the mortgage to get this sum below 125K

Or even worse - I'm buying an additional share so that has to be added to my original 375K?

Unless it's very simple (no tax due) the legal fees plus lender fees plus accountants fees to do the calculations almost certainly mean that it's not worth considering doing this.

AGoodman
Posts: 785
Joined: Fri May 16, 2014 3:47 pm

Re: SDLT on multiple transfers.

Postby AGoodman » Wed Jul 10, 2019 10:42 am

If she has a 98% share then each time you transfer the 98% there is a deemed consideration of £122,500.

There shouldn't be any SDLT provided it is not a second property.

someone
Posts: 371
Joined: Mon Feb 13, 2017 10:09 am

Re: SDLT on multiple transfers.

Postby someone » Wed Jul 10, 2019 11:32 am

If she has a 98% share then each time you transfer the 98% there is a deemed consideration of £122,500.

There shouldn't be any SDLT provided it is not a second property.
Thanks. Hopefully it won't be necessary.

I didn't think second property was relevant for transfers between husband and wife (any more)

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09820


I still don't understand where the rules on incremental purchases apply but if they're irrelevant to this situation then that is great.

AGoodman
Posts: 785
Joined: Fri May 16, 2014 3:47 pm

Re: SDLT on multiple transfers.

Postby AGoodman » Wed Jul 10, 2019 2:10 pm

Correct. I hadn't come across that. The rules are just too complex these days.


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