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  • FIRST POST
    • tonymac52
    • By tonymac52 24th May 18, 10:40 AM
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    tonymac52
    SDLT on transfer of equity of marital home
    • #1
    • 24th May 18, 10:40 AM
    SDLT on transfer of equity of marital home 24th May 18 at 10:40 AM
    Help please. Recently got married and wanting to transfer the home that we are living in and have been for the last 2 years into joint names with my wife. We have been together longer. The property is currently in my sole name. Mortgage is around 158K. We own other properties jointly which are rented out. Because of this, I understand that my wife will have to pay 3% stamp duty on half of the mortgage value to be able to do this. Is this correct? How is this fair? Is there any way round it? Advice appreciated, thank you.
Page 1
    • G_M
    • By G_M 24th May 18, 10:46 AM
    • 45,528 Posts
    • 54,690 Thanks
    G_M
    • #2
    • 24th May 18, 10:46 AM
    • #2
    • 24th May 18, 10:46 AM
    She is becoming a 2nd home owner.


    the tax is designed to hit..... 2nd home owners.
    • kingstreet
    • By kingstreet 24th May 18, 10:54 AM
    • 34,226 Posts
    • 18,577 Thanks
    kingstreet
    • #3
    • 24th May 18, 10:54 AM
    • #3
    • 24th May 18, 10:54 AM
    I'm not sure about this.

    Married and purchasing a share of the home she has resided in for several years? There is no increase in the number of properties owned by the couple as a whole.

    I'd do further research on the HMRC site before accepting this should be SDLT surcharged.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • pollyanna24
    • By pollyanna24 24th May 18, 11:14 AM
    • 3,873 Posts
    • 4,728 Thanks
    pollyanna24
    • #4
    • 24th May 18, 11:14 AM
    • #4
    • 24th May 18, 11:14 AM
    I had to pay stamp duty when I bought my brother out of the property that I had owned and lived in for years.

    Seemed particularly unfair when I paid stamp duty on it when I first bought the house with my ex (and then my brother bought him out) 12 years ago.
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - 400,000
    Mortgages (3rd Nov 2017) - 180,813.85
    Equity - 219,186.15
    • SDLT Geek
    • By SDLT Geek 24th May 18, 11:29 AM
    • 320 Posts
    • 190 Thanks
    SDLT Geek
    • #5
    • 24th May 18, 11:29 AM
    • #5
    • 24th May 18, 11:29 AM
    Check out the changes made by the Autumn Budget of 22 November 2017. They provide a new "get out" of the higher rates for transfers just between spouses. It is an exemption from higher rates (the 3% surcharge) only, not from SDLT generally.


    Do not let anyone tell you that spouses are treated as a single unit!!
    • gingercordial
    • By gingercordial 24th May 18, 12:11 PM
    • 1,230 Posts
    • 1,289 Thanks
    gingercordial
    • #6
    • 24th May 18, 12:11 PM
    • #6
    • 24th May 18, 12:11 PM
    Why do you need to do the transfer? Your partner could just register "matrimonial home rights" on the property with the land registry and that should protect her in the event of a divorce after a short marriage.

    https://www.google.co.uk/search?q=register+matrimonial+home+rights&rlz=1C1C HBF_en-GBGB748GB748&oq=register+matri&aqs=chrome.0.0j69i5 7j0l4.2831j0j7&sourceid=chrome&ie=UTF-8

    After a long marriage the fact that it was held in just your name wouldn't matter as all assets would be divided up by the court.

    If you have no children and die intestate it would go to her as your spouse anyway. But you should make a will or update your existing one (because they become invalid on marriage unless you specified otherwise beforehand) as good practice and can leave it to her there too.

    I don't see the benefit of doing this if it is going to cost you money in SDLT.
    • SoFedUpOfBeingRippedOff
    • By SoFedUpOfBeingRippedOff 9th Aug 18, 8:49 AM
    • 7 Posts
    • 1 Thanks
    SoFedUpOfBeingRippedOff
    • #7
    • 9th Aug 18, 8:49 AM
    • #7
    • 9th Aug 18, 8:49 AM
    Thanks for the advice on here which has been helpful. It categorically states on HRMC website (today at 9/8/18) Guidance -
    Higher rates of Stamp Duty Land Tax - (guidance/stamp-duty-land-tax-buying-an-additional-residential-property) page...

    Transactions
    If youre transferring ownership (or part ownership) of a residential property to your spouse, the higher rates do not apply as long as no one else is involved in the transfer.


    I phoned HRMC SDLT advice line and they said they had not been made aware of this but said that if it says so on the website that it must be the case. Scary if this has been in place since Nov 2017 and advisors are still not aware!!
    • SDLT Geek
    • By SDLT Geek 12th Aug 18, 11:09 AM
    • 320 Posts
    • 190 Thanks
    SDLT Geek
    • #8
    • 12th Aug 18, 11:09 AM
    • #8
    • 12th Aug 18, 11:09 AM
    It is good that the HMRC guidance is catching up, even if the Helpline are not helpful.
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