What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) may be payable by a person if all or part of an interest in property is transferred to them and they give consideration in return. Consideration can take the form of money or the release of a debt etc. Therefore, SDLT can be payable even if no money exchanges hands but the person has assumed liability for an outstanding mortgage.
SDLT will only be payable if the consideration (i.e. the total of the payment and/or the proportion of the outstanding mortgage that belongs to the share of the property being transferred) exceeds the SDLT threshold. The rate at which SDLT is payable depends on whether the person already owns other property.
Transfers of property between married couples
SDLT is not payable if there is a transfer between husband and wife pursuant to a Financial Remedy Order or in contemplation of a Financial Remedy Order.
Transfers of property between unmarried couples
If you are unmarried and there is a transfer of the property from your joint names into the other party’s sole name and that party pays money for that interest or they take on the mortgage (or both) then they will have to pay SDLT (if above the threshold).
How much is Stamp Duty Land Tax?
There is an online SDLT calculator which can be found at https://www.gov.uk/stamp-duty-land-tax/residential-property-rates. You should seek advice from your solicitor to check the position.
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Please note the above is for information purposes only and is intended to be a short summary. It should not be treated as a comprehensive guide and should not be acted on without qualified legal advice.
