Transfer of Property to Sibling

hgd7

Hi all,
My sibling is 'gifting' me her flat with no money being exchanged.
Her flat is worth 330k and has a mortgage of 232k. By receiving this flat, and taking over the consideration, am I liable for stamp duty? I already own my own property. I'm sure I do owe stamp duty but not sure how much this will be to calculate this. Any help? I checked this link gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property#gift but not sure on the % of what I have to pay.

saajan_12

You are essentially paying £232k for the property (by taking over the mortgage liability), so can plug this into one of the many SDLT calculators.

'Standard' SDLT would be 0% on the first 125k and 2% on the next 107k = £2140. Assuming your share in your own property is over 40k, you'd be liable for higher rate stamp duty, at an additional 3% x 232k = £6960 though you may get this refunded if you sell your main residence and move into the new flat within 3 years.

For now, total Stamp Duty = £9100

hgd7

Thank you - just to check I know all this, is there any capital gains in any way to pay from either party? And as the 'gift' is £0 I assume the only stamp duty is on the mortgage and not the value of the property.

davidmcn

hgd7 wrote: »

Thank you - just to check I know all this, is there any capital gains in any way to pay from either party?

Your sister might need to pay CGT. Depends how much she acquired it for, and what she's used it for.

You won't immediately need to pay CGT, but you might when you dispose of the property.

And as the 'gift' is £0 I assume the only stamp duty is on the mortgage and not the value of the property.

Correct.

AnotherJoe

Why repost? Didn't you like the answers you got before about your tax evasion scheme?

https://forums.moneysavingexpert.com/discussion/5644183

hgd7

Thanks AnotherJoe - I am simply working out the best options and working out whats best for me. If you don't like it then don't post.

Pixie5740

hgd7 wrote: »

Thanks AnotherJoe - I am simply working out the best options and working out whats best for me. If you don't like it then don't post.

People give up their free time to help others. It's ungracious to waste people's time asking the same question over and over again.

You were told in your previous thread that what you are doing to try and avoid the higher rate of SDLT was pointless so why post again?

00ec25

hgd7 wrote: »

You are wasting your own time by posting again. Its up to people if they want to post so I can understand and someone wants to help me understand. Any decision I make is up to me and me alone. Mind your business if you don't like it. If you don't like it then don't reply. Simple.

rather than post the original question again why not explain what it is you did not understand about the original answers?

the facts will not alter, you have been told several times on your old thread the implications for SDLT and CGT

So, what did you not understand? If you vainly hope the answers will be different if you ask again then you cannot be more wrong since the answers already given deal with the law as it stands and you cannot alter that, you can of course try to evade the law and hope you do not get caught, but you were told that last time as well.

hgd7

Jeez - so much abuse - guys if you don't like the post then don't reply. Freedom of posting what I like. I simply asked again as I did not see the other answers on the thread and am new to this forum so learning how to use it. Gosh! So many stick up people, thanks to those who answered as I now understand the process thanks to your help. The rest....thanks for posting but no thanks to the 'why you posting' posts.

gettingtheresometime

manners maketh the man/woman