SDLT on transfer to joint ownership

SDLT on transfer to joint ownership

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I have a property in husbands name with a £1m Market value and an impending sale. I thought we could transfer into joint names with wife to avail of her annual exemption as the gain is fully taxable. The solicitor says that the SDLT charge would apply as there is a £600,000 mtge so applies on 300k. Surely if we did the transfer on exchange or gave an assurance that the mtge remained with husband until the proceeds come through, we could avoid the charge ?

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By TaxationPete
16th Mar 2012 08:59

The solicitor is correct. However you only need to transfer enogh share of the property so the resulting gain mops up her CG Allowance.

Also the solicitor should have discussed a Declaration of Trust to alter the beneficial ownership which does not involve the mortgage company or attract SDLT.

This must be done well before the exchange of contracts.

Have either of you lived in the property as your principle residence.

Regards Peter

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