Is stamp duty payable

kevj9201

Hello, I hope this is the correct place to ask for advise on if SDLT is payable.

I have a property which is rented out and i want to transfer half to my wife, the property is valued at £90K and we are applying for a joint mortgage of £65k, my wife will not be paying anything to me for her half of the £25k equity. Will she have to pay any stamp duty on the transaction?

Many Thanks
Kevin

spadoosh

Stamp duty only applies to properties over £125,000.

pphillips

No SDLT or CGT is payable on gifts between spouses.

kevj9201

spadoosh wrote: »

Stamp duty only applies to properties over £125,000.

Thanks,
What about the 3% additional property stamp duty?

kevj9201

pphillips wrote: »

No SDLT or CGT is payable on gifts between spouses.

Thanks,

Does that include my wifes half of the new mortgage as this isn't technically a gift? (we are not borrowing any additional funds, just remortgaging the existing amount into joint names).

00ec25

no SDLT, but the above answers don't cover the real reason why and have ignored your valid question:

kevj9201 wrote: »

What about the 3% additional property stamp duty?

you said this is a BTL property where your wife is being added to a mortgage (and by implication the deeds) for the first time, and is not paying you for the equity in excess of the joint mortgage. So she is acquiring an additional property, nor will it be her main home

However, the chargeable consideration comprises only the o/s mortgage of 65k, which is now joint, so the property is "costing" her 32,500.

She is not paying for any equity so her chargeable consideration is:
a) <40,000 so no higher rate SDLT
and
b) <125k so no standard rate SDLT