Is there SDLT on transfers between husband and wife?

Home Forums Patrick Cannon Is there SDLT on transfers between husband and wife?

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    Stacey Steele
    Guest

    Hi,

    I currently have a situation where a husband and wife are joint tenants on a number of properties, all of which are mortgaged.

    They are considering changing the ownership ratio to be 90:10 in favour of the husband and I am unclear as to what the SDLT implications would be.

    From what I can gather in cases where there was originally one owner and mortgagee but then a transfer was made into joint names, SDLT will be payable here on 40% of the outstanding mortgage, as “consideration” for the transfer of ownership of 40% from the wife to her husband, however, I wonder if the fact that they were joint owners and both named on the mortgage before and after the transaction has any bearing on the SDLT position as they remain jointly liable for the debt either way?

    Thanks

    Stacey

    #764 Reply
    Justin Bryant
    Guest

    SDLT advisers tend to be of the view that SDLT can be avoided here (if it would otherwise be due) through careful drafting of the gift re the loan so that no liability is assumed by the donee but one needs to be a bit careful re such things and HMRC’s guidance here is unhelpful.

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