SDLT payable when adding spouse to a property

caronoel

Situation is that a friend has a house worth £1.5m or maybe a bit more. Mortgage about £600k.

The house and mortgage is in his sole name, but it is their marital home and principal primary residence

What are the stamp duty implications of adding the wife as a joint tenant?

How can he mitigate any tax (short of not adding her name to the property)?

TheCyclingProgrammer

Stamp duty is only payable on any payment (consideration). If he gifts her half the house but remains the sole mortgagee (if his lender allows this) then there is no consideration and no stamp duty.

If she gives him any cash or takes on any liability for the mortgage then that would be the value that stamp duty is payable on.

Assuming she isn't paying any cash for her share, then there are no stamp duty implications by simply adding her as a joint tenant on the deeds however if he also adds her to the mortgage and she takes on 50% of it she will owe stamp duty on £300k.

https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property#if-you-marry-enter-into-a-civil-partnership-or-set-up-home-together

So the only way to avoid stamp duty is not not add her to the mortgage but I'm reasonably confident that this would not be allowed by the lender as they will require all owners to be on the mortgage.