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

    Rachel

    #2
    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.

    Comment


      #3
      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).

      Comment


        #4
        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.

        Rachel

        Comment


          #5
          https://www.gov.uk/guidance/sdlt-tra...nd-or-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

          Comment

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