Question about SDLT

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    Question about SDLT

    Hi, would appreciate any advice on SDLT.

    Need to transfer 95% of a buy to let property into my name. At present owned 95% family member/5% me.

    Mortgage is £200,000.

    I believe SDLT is paid on anything over £125,000 at the rate of 2%.

    However as no money is changing hands and it would be gifted, would SDLT still be payable on the £75,000 of the mortgage.

    Many thanks


    SDLT is not payable on pure gifts AND where no mortgage is involved. Mortgages do complicate it. Stamp Duty Land Tax (SDLT) is due at the rate of x% on outstanding mortgage sum (and I have no idea what this will mean after April).

    This assumes family member is not your spouse.


      Are you sure that the lender will allow the transfer?
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


        Thank you both for your replies. Yes, the lender will be okay with it.

        I looked back at a previous post - OP freddycd15 - and the replies. Andrew, I saw the same Gov website as you, which seemed to say that where there was no consideration then no SDLT was payable even if there was a mortgage. However Gordon`s reply seems correct even though it contradicts the advice on the website! It`s really confusing!!
        And I wonder if the new 3% levy coming into force will apply in this situation i.e. where it`s not an outright purchase and I part own the property.




          If the transfer by gift of a property which is a 100% owned by the donor , then no sdlt payable.

          if the transfer of property which has attached 80% mortgage, the consideration is taken as equal to the amount owing under the mortgage and this consideration is liable to sdlt payment


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