SDLTM00330A - Scope: what is chargeable: land transactions: is notification required? examples
Example 1
Father gifts property worth 拢200,000 to his son for no monetary consideration. There is no mortgage on the property.
The transfer in this instance is not notifiable as there is no chargeable consideration.
Example 2
Mother gifts property worth 拢200,000 to her daughter for no monetary consideration. There is however a mortgage on the property of 拢180,000 at the date of the transaction and the daughter assumes responsibility for that mortgage. The daughter owns no other property interests.
Stamp Duty Land Tax (SDLT) is due at the appropriate rate on that outstanding mortgage sum, unless First Time Buyers relief applies see /government/publications/stamp-duty-land-tax-relief-for-first-time-buyers-guidance-note This transaction is notifiable.
Example 3
Husband wishes to transfer half of his only residential property worth 拢300,000 into his wife鈥檚 name. No cash changes hands but the property is subject to a mortgage for 拢200,000. His wife has previously owned property but not at the time of the transfer.
As half of the property is being transferred, half of the mortgage debt is being taken over by the wife.
There is no SDLT due on this 拢100,000 chargeable consideration as it does not exceed the tax threshold but the transaction is still notifiable. N.B. First Time Buyers relief and Higher Rates for Additional Dwellings are not applicable to this transaction.
See SDLTM04040 for further guidance on FA03/SCH4/PARA8(1A) (debt as consideration).