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  • Tax

    Stamp duty on main residence gift

    Hi, if we gift our main residence (mortgage free) to our children, once we have brought a new home, would they have any stamp duty to pay?

    Thanks

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    As there is no mortgage and no sale price therefore there is no consideration so the transfer should be free of SDLT

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    What would be the position if this was their second property?

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    Still no SDLT if no consideration

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    Debbie Franklin

    Director of Tax Peplows Limited

    CTA ACA FCCA

    Then you'll need to speak to an expert SDLT tax advisor. Try ctatax.uk.com. I just heard their presentation yesterday and sounded brilliant though have not used them previously so use usual common sense/caution please. No relation whatsoever.

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    I believe if parents want to do this sooner rather than later and whilst there's a mortgage its best to find a way to pay the mortgage off first so transferred without a mortgage then virtually simultaneously the children obtain a mortgage (i assume as a remortgage) then gift these monies (all or part back to parents). But i'm no tax specialist. I'd imagine its reasonably straightforward to find the funds to pay off the parents mortgage if parents don't have it assuming the new mortgage is known to be completing next or same day.

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    regards Andrew Peers - property investor / sourcer - 07912674181

    a.peers@seamlessproperty.co.uk

    Property Redress Scheme Number 011436     NLA member 174404