Stamp Duty Advise

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David.
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Hi All

I have very recently purchased a property which I was advised to put it in my wife's name due to the new mortgage interest relief rules, as she is not a higher rate tax payer and it wouild therefore be beneficial.

The property was bought for cash and needed a full refurb which is currently taking place.

I wanted to remortgage the property as soon as the refurbishment has been completed in order to release the funds for the next project i have spoken to my broker and the problem I have, which i did not know about is that the lenders who will lend right away require a minimum income criteria (£25,000), which my wife does not meet. The lenders that will lend right away and only look at rental income will not allow immediate remortgages and require minimum 6 months periods.

What I want to know is, if the property is now transferred over to me, or i become a joint owner, or if it is transferred in to a limited company is stamp duty payable?

This link below seems to indicate that if there is not current load on the property then it will not be subject to SDLT.

https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property#gift

'You’re given property as a gift If you get property as a gift you won’t pay SDLT as long as there’s no outstanding mortgage on it. But if you take over some or all of an existing mortgage, you’ll pay SDLT if the value of the mortgage is over the SDLT threshold.'

Example
A husband decides to transfer a half share in a property he owns to his wife. He doesn’t take a cash payment for this share, but there’s an outstanding mortgage on the property. The amount outstanding is more than the current threshold, so SDLT is payable, even if the husband keeps the mortgage. He must tell HMRC about the transaction.

Anyone in the know on this?

Thank you!!

David.

24/03/2017 11:27

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