Adding spouse to BTL remortgage - SDLT?

NewBe

I own a single BTL property in my own name. My earnings (PAYE) is slowly creeping up to the point where earnings plus rental income will take me into the 40% tax bracket. My wife currently earns a lot less. If we split the rental income 50/50 I would avoid the 40% tax.

If I decide to remortgage and add my wife, will she have to pay any SDLT?

Property value: £180,000
Remortgage: £120,000

Thanks.

El_Torro

A quick internet search tells me that she will have to pay stamp duty for the 50% she will own. The stamp duty is based on the original purchase cost, not the current market value. 

One other option would be to increase your pension contributions to avoid paying 40% income tax. Of course this might not be a good long term option, as future pay rises for you will mean you have to contribute even more into your pension. Who knows when the income tax bands will be increased?

Yet another option would be to put the Buy To Let property into a Limited Company. This would be more complicated than the first two options. It would also be expensive initially.

NewBe

A quick internet search tells me that she will have to pay stamp duty for the 50% she will own. The stamp duty is based on the original purchase cost, not the current market value.

Purchase price was £95k. It will be classed as a second property so stamp duty will be half of £4,750?

One other option would be to increase your pension contributions to avoid paying 40% income tax.

This is something I had considered but I won't be able to access the money until retirement. 

Yet another option would be to put the Buy To Let property into a Limited Company.

The general opinion seems to be that SPV/LTD is only advantageous if you own multiple BTL's. Think increased pension contributions might be the best option for now, until it becomes unviable. Thanks @El_Torro.