Is SDLT payable?

Stamp Duty Land Tax and change of beneficial ownership subject to mortgage

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Married couple who currently own buy to let properties jointly subject to mortgages.  As one earns a lot less than the other, they have been advised by their accountants to change their beneficial ownership in favour of the lower earner to legitimately plan regarding their income tax liability. The legal ownership and joint and several responsibility for the mortgages will not change but the declaration of trust is likely to include reference to the mortgage liability following the beneficial ownership (which is proposed at 95% : 5%). Do they need to consider SDLT in respect of the mortgage liability on the assumption of the greater proportion of ownership / liability for the debt? . 

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By gbuckell
20th Nov 2017 10:38

Yes - assumption of mortgage is consideration and there are no exemptions for inter spouse transfers.

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Replying to gbuckell:
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By Portia Nina Levin
20th Nov 2017 10:46

Unless they know a canny solicitor who specialises in SDLT, who can make it all go away, apparently. Well, so Justin Bryant keeps telling us.

He probably just gets 'em in a room and says, "who's going to know if none of us tell anybody" though.

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Replying to Portia Nina Levin:
By Duggimon
20th Nov 2017 14:50

You mean to say he made an assertion without four links to extremely long tribunal transcripts making points vaguely but not entirely relevant to the original query?

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Replying to Portia Nina Levin:
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By Justin Bryant
20th Nov 2017 15:54

Yes; any SDLT specialist is aware of how SDLT can be prevented in this situation; not just me.

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