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  • Tax

    Transfer of equity BTL tax implications


    Sorry for yet another very commonly asked question! I've tried looking on other posts but it doesn't help with clarification.

    I'm looking to add my 2 children onto a buy-to-let property which I've owned for 15 years in Oxford. Currently it is jointly owned with my husband. So all-in-all will end up with 4 equal owners which I plan to do by remortgaging the property as I know a few lenders who can take up to 4 applicants.

    This buy-to-let property,

    Current value: £580,000
    Current Mortgage: £300,000

    I just want to know what tax implications there'll be if I add my 2 children onto the mortgage/title deeds, and how I can work how much tax would be payable, whether it is in the form of Stamp Duty or any capital gains tax that might be liable?

    Children do not currently own any property as of present.

    It was last remortgaged with my husband when the value was £350,000.

    Originally bought for £205,000.

    Any guidance would be deeply appreciated.

    I think you need to speak to a tax advisor to understand your rationale behind adding them.

    To me I think it'll be to their detriment when they have to buy their own property in future and become liable for the additional stamp duty because they will be classed as already owning a home. The kids will get inheritance anyway which will be tax free at the current rate if split equally between them. 

    I think there are several factors that will help decide which route is best for you and an advisor is probably a good place to start. At high level, my personal feeling is that you shouldn't add them based on the current laws.


    Disclaimer: I have no legal expertise nor am I a qualified advisor on any subject. A humble landlord using an open forum to exchange ideas and experiences. 

    Two issues you may have to consider:

    1. Age
    2. Stamp duty

    They have to be over 18, you cannot own property or get a mortgage under the age of 18.

    If you put them on the property you will remove their right to pay zero stamp duty when they buy their first home.


    Landlord with 25 years’ experience in the property market and a specialist in tenant referencing, ID and credit screening. Creator of identity, credit and anti-money laundering system ValidID.co.uk

    You need to consider the following:

    CGT on disposal to a connected party

    SDLT (but I think you can get round that)

    Mortgage permission - unlikely unless they are both 18

    Additional SDLT when kids buy their own place

    Income may still be on your and your husband not just the 50% you receive. This is due to the anti-avoidance settlements legislation.

    IHT (likely to be a PET so 7 year rule).

    Best if you take professional advice.


    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)