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  • Tax

    Stamp duty when transferring property to wife

    Hi all,

    i am currently remortgaging a buy to let flat and am thinking  about transferring a small proportion (maybe 10%) to my wife so that we can be more tax efficient.

    My question is whether there would be any stamp duty payable for doing this? I bought the flat for £310k 5 years ago and the recent mortgage valuation was for £325k. We both own other properties.

    Any  advice would be appreciated.

    Snoopy

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    Transfers between husband and wife are subject to SDLT.

    Prior to 2017 you would transfer value less than £40k in value so it’s under the SDLT second property threshold. But that's not relevant now and there is no additional 3% applying to transfers to spouses.

    Give me a call if you wish further advice.

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022

    The £40k threshold no longer relevant for transactions between spouses.

    Deb

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    Debbie Franklin

    Director of Tax Peplows Limited

    CTA ACA FCCA

    Debbie - can you please clarify what you mean by that? Are all transfers between spouses whatever the value subject to SDLT now and if so can you please point me in the direction of the HMRC page for this as I thought the same as Stuart above?

    I believed that if there is no payment made, the value of SDLT is based on the consideration (the % of mortgage value for example) and if this was under £40k nothing was due?

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    if under 125k nothing due the extra 3% no longer applies between spouses

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    Debbie Franklin

    Director of Tax Peplows Limited

    CTA ACA FCCA

    Sorry one other question if that’s OK (sorry to hijack original thread). If two properties were transferred to a spouse at the same time, each with a consideration of £100,000 (say a 20% share of a property each with a £500k mortgage), would that be classed as a connected transaction with a total of £200k and therefore over the £125k threshold?

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    yes they would be linked so you need to keep the total below 125k

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    Debbie Franklin

    Director of Tax Peplows Limited

    CTA ACA FCCA