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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.
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.
Chartered Accountant, Tax Advisor and Mortgage broker
(and BTL portfolio owner)
The £40k threshold no longer relevant for transactions between spouses.
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?
if under 125k nothing due the extra 3% no longer applies between spouses
Thanks for the speedy reply Debbie!
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?
yes they would be linked so you need to keep the total below 125k
Thank you Debbie
sorry for the delayed response and thanks for your help.
i would be grateful if you could help me understand the below:
you mentioned that no stamp duty is payable if the transfer between husband and wife is less than £125k. Does the £125k relate to the property value, amount being transferred, value of old mortgage or value of new mortgage? If 10% of a property worth £325k was transferred would this amount to 32.5k of that 125k allowance?
it is the % of mortgage moving at the time of transfer