How will SDLT2 apply in this situation?

bdd198

Hi


I am the joint owner of a small one bed flat that is currently let out. I also own other properties. Together me and my co-owner are tenants in common.


The flat has an estimated market value of £100,000. We currently have a mortgage on the property of £75,000 (75% LTV).


I am now looking to buy out my co-owner at the current market value. Therefore I will be paying her £12,500 for her equity and getting the mortgage transferred into my sole name.


The question is, how will SDLT2 apply in these circumstances? 3% on the total value of the property (i.e. £100,000), 3% on just the transfer value (£50,000) or will it not apply at all as the property is already partly in my ownership?


Thank you for any comments or observations.

booksurr

have you tried to read the guide? I take it as an owner of multiple properties you understand that SDLT is based on the chargeable consideration, not value?

https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property

"If you transfer or divide up jointly-owned property or land: unmarried couples and other joint owners
You don’t pay SDLT if 2 or more people jointly own property (as joint tenants or tenants in common) and you divide it physically and equally and own each part separately. But, if one person takes a bigger share, or all of the other’s share, and pays cash or some other consideration in exchange, you must tell HMRC. If the amount you pay is more than the current threshold, you’ll pay SDLT on it, see example 4."