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Stamp Duty calculations for adding spouse to BTL property
Comments
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Geek: Incorrect, for the position after 31 March 2021. The extra 3% does not apply. So your wife will pay SDLT at 2% on the slice of the chargeable above £125,000. 2% of £25,000 is £500.taxmatters said:
So based on the above replies, is the following a correct summary?
Before 31 March 2021:- If I transfer 50% of the BTL property share to my wife (having £300,000 pending mortgage, no cash payment involved), amount for chargeable consideration would be 300000/2=£150,000 but as this amount is less than current SDLT threshold (£500,000) we pay NO Stamp Duty. Understood.
After 31 march 2021 (likely to be the case in my situation):- If I transfer 50% of the BTL property share to my wife (having £300,000 pending mortgage, no cash payment involved), amount for chargeable consideration would be 300000/2=£150,000 but as this time the "Stamp duty holiday" would be over by this time, so threshold becomes £125,000, I'll have to PAY Stamp Duty on £150,000, which is (3% on 125k + 5% on 25k) = £5,000.
- So in this case I cann't avoid paying stamp duty (so above StampDuty is applicable) even though I am transferring share of my property to my wife as a gift?
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That's great news. Appreciate the reply.SDLT_Geek said:Geek: Incorrect, for the position after 31 March 2021. The extra 3% does not apply. So your wife will pay SDLT at 2% on the slice of the chargeable above £125,000. 2% of £25,000 is £500.
Could you please share any link supporting this statement for my reference. Just to remind, this is for our Buy to let property to which I am the sole owner and would want to transfer 50% share to wife's name after 31 March 2021. Thanks0 -
Here is the supporting link: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09820taxmatters said:
That's great news. Appreciate the reply.
Could you please share any link supporting this statement for my reference. Just to remind, this is for our Buy to let property to which I am the sole owner and would want to transfer 50% share to wife's name after 31 March 2021. Thanks
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