Stamp duty - transfer of equity.

Deniseconfused

Background -
Ive just transferred 50% equity to my partner for 50% of the original cost ( bought last year ) No mortgage.
The conveyancer did the transaction as myself as vendor then myself and partner BOTH as purchasers. Stamp duty calculated on his 50% consideration = all cool.

Situation related to my question …
However this has got me thinking about a £500k house that Ive stopped using as a BTL and I want to transfer 50% of it to my son. We'll both take over the mortgage £300k debt as a new residential mtge. The equity will be a gift ( I know CGT will kick in)

STAMP DUTY QUESTION - If I am the vendor as well as the purchaser and thus it's not my main residence - am I going to get caught by the additional 5% stamp duty yet again - or is there an exception ?

I know there will be stamp duty on his £150k as he is taking on half the mortgage - its the additional SD charge … which is of concern as I paid it when I bought it

_Penny_Dreadful

https://forums.moneysavingexpert.com/discussion/6659104/stamp-duty-transfer-of-equity

You’re not selling the BTL, only transferring part of the ownership to your son, therefore no SDLT due on your share.

Keep_pedalling

Does your son already own his own home? If not he loses his FTB status and will be hit by the additional SDLT when he does buy his own place>

Deniseconfused

https://forums.moneysavingexpert.com/discussion/comment/81918948#Comment_81918948

he does 👍🏼 he's splitting up and selling

Deniseconfused

Thats what I thought with transferring half of my house to partner but that was done as I sell and we BOTH re purchase which seems madness to me !

England btw

Deniseconfused

any other thoughts ?

SDLT_Geek

https://forums.moneysavingexpert.com/discussion/comment/81923230#Comment_81923230

I agree with the answers above. If you transfer a half share in the £500K property to your son in return only for him taking on joint responsibility for the £300K loan, then he is the sole "purchaser".

I would expect the chargeable consideration to be £150,000 and for the extra 5% SDLT not to apply if it is the only property he has an interest in at the point he acquires the half share.

Deniseconfused

https://forums.moneysavingexpert.com/discussion/comment/81923318#Comment_81923318

cheers for your reply. It was more regarding me though ? In my most recent transfer of half my house to my partner - they put me down as seller AND purchaser. I had the main residence exception but in the transfer of half of my second home to my son, I'll not have that exception if they put me down as seller and vendor again 🤔