Stamp duty when changing the beneficial interest share

  • Filter
  • Time
  • Show
Clear All
new posts

    Stamp duty when changing the beneficial interest share

    My wife and I have a joint buy to let property, where the beneficial interest is split 50/50 and where we're both on the mortgage which is £210,000.

    As she isn't working at the moment and I'm a higher rate tax payer we want to switch the beneficial interest so she has 99% and I have 1% so we can save on income tax.

    Will she have to pay stamp duty to do this?

    I understand stamp duty is payable where someone either pays for a share in a property, or takes on a mortgage to do so. But if she's already on the mortgage - i.e with joint and several liability - she won't have to pay any stamp duty to increase her share, as it makes no sense to be 99% and severaly liable for a mortgage. So my thinking is she wouldn't but I'd like to check this is correct if there are any experts here.

    Check if your 50/50 ownership at Land Registry is registered under "joint tenants" or "tenants in common" ?

    If it is "tenants in common", no change is required ( and no stamp duty to pay ) .

    Then you can change ratio to 99/1 by using a separate deed of trust and serving form 17 on hmrc.


      - Stamp duty is not payable on gifts where not mortgaged
      - Stamp duty is payable on gifts where mortgaged (on the mortgaged part of the transfer)
      - The fact that transfer takes place via a Deed of Trust (which is the only way it can do) is totally irrelevant to the stamp duty position. The fact that the legal title is not changing is irrelevant to stamp duty.

      If you want to do the transfer of interest to save tax you do have to inform HMRC of the transfer via form 17 so they will know of it.


        To add: The jointly and severally liability bit -- is not relevant to anything here. All that has to do with is who mortgage company can sue for repayment of the whole (one or both) when things go wrong.
        It has to do with the liability for the loan - not ownership (in theory I can be liable to repay a loan and yet have no ownership at all).

        You will need to inform the mortgage company too of any beneficial transfer as it is an actual transfer (if you get divorced, die or your wife gets sued over some incident she will actually OWN 99%). More than inform -- you need to seek their permission.


        Latest Activity


        • Lease extension
          Hi I'm a newbie and would welcome information about any tax relief on a 99 year lease extension I have just paid for....
          21-10-2019, 16:37 PM
        • Reply to Lease extension
          It would be against CGT, not income.
          21-10-2019, 17:42 PM
        • SA 700 tax return
          At the end of February 2019 I did a Share for Share exchange agreement on an offshore company which owns a property to bring the company into the UK jurisdiction. Can anyone tell me do I still do a paper SA700 tax return for the 10 months April 2018 to February 2019 while the company was still in the...
          21-10-2019, 16:23 PM
        • Rent-a-room and tax deductions
          Trying to settle a debate :-

          I am aware that claiming rent-a-room relief precludes the deduction of expenses for that property such as utilities, GSC, etc.

          However, my accountant has stated that I cannot deduct an amount for use of my own property for business purposes, since...
          17-10-2019, 11:57 AM
        • Reply to Rent-a-room and tax deductions
          Thanks. That is what I thought....
          17-10-2019, 13:23 PM
        • Reply to Rent-a-room and tax deductions
          No, I believe you would be able to claim an allowance of £4 a week against the income from that business....
          17-10-2019, 13:18 PM
        • Reply to Rent-a-room and tax deductions
          The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home. This is halved if you share the income with your partner or someone else. You can let out as much of your home as you want.

          So your web design business...
          17-10-2019, 13:04 PM
        • Reply to Rent-a-room and tax deductions
          I am not suggesting that Rent-a-Room is a business (...and that is, I guess, part of the point of my question).

          I am aware that claiming rent-a-room relief precludes the deduction of expenses for that property such as utilities, GSC, etc. However, my understanding/assumption is that this...
          17-10-2019, 12:48 PM
        • Maintenance payment flow of funds
          Hi all,

          I am one of three flats and I own a share of freehold. We've setup a company to deal with the day-to-day matters such as maintenance payments and such.

          One of the freeholders, who is also a director of the company, usually arranges quotes for maintenance works and insurance...
          15-10-2019, 05:10 AM
        • Reply to Maintenance payment flow of funds
          For your BTL letting business , you are required to keep proper records of the rental income and expenses for each year and be able to report the figures in your annual income tax return.

          The rental income and expenses must be supported by bookkeeping records, suppliers invoices...
          17-10-2019, 12:46 PM