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transfer 1% property to wife SDLT

transfer 1% property to wife SDLT

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Hi, I have a client call about transfering property to husband...

Transfer 1% of property to husband and attain 50:50 split on the rental income which i agree on

However the property has a mortgage of £400K, I was under the assumption that SDLT whould be due as they whould be liable equally to the mortgage company and not a 1:99 split on the mortgage.

Could any one point me in the right direction 

and if its just 1% of mortgage transfer whould they still get 50% deduction for mortgage interest on rental profits? 

thanks

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08th Feb 2019 10:51

pnut2g wrote:

Transfer 1% of property to husband and attain 50:50 split on the rental income which i agree on

If you are going to just randomly make up rules why ask the question?

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to Tim Vane
08th Feb 2019 10:58

Tim Vane wrote:

pnut2g wrote:

Transfer 1% of property to husband and attain 50:50 split on the rental income which i agree on

If you are going to just randomly make up rules why ask the question?

Isn't that the effect of s 836?

Pay £1 of the mortgage, and do the transfer. Job's a good 'un. NB for s 836 to apply, the title of the property needs to be in joint names (and I don't mean "casa de Bill and Jane").

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to Vile Nortin Naipaan
08th Feb 2019 11:03

Careful drafting of the DoT is needed to avoid SDLT if the donee is to be jointly liable to the mortgagee for the mortgage (which is likely if they are to be a joint registered legal owner).

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to Justin Bryant
08th Feb 2019 11:15

Now read the OP again. 1% of £400K is?

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to Vile Nortin Naipaan
08th Feb 2019 11:24

You are again showing your total ignorance of tax & property law and law generally and everything generally.

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to Justin Bryant
08th Feb 2019 11:40

Ah, now you've seen it! And I've hurt your feelings. There, there. I'm ever so sorry.

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By pnut2g
to Tim Vane
08th Feb 2019 14:08

Making things up?
If both are put on the legal title tenants in common, are they not taxed 50:50 irrespective of actual holding unless form 17 is submitted.

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to pnut2g
08th Feb 2019 14:58

pnut2g wrote:

Making things up?
If both are put on the legal title tenants in common, are they not taxed 50:50 irrespective of actual holding unless form 17 is submitted.


Yep, that's what I thought.
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23rd Feb 2019 18:22

So far as SDLT is concerned, the chargeable consideration is the same proportion of the mortgage as the proportion of the property that is transferred, see SDLTM04040 https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdlt... So in this case 1% of £400,000 which is only £4,000. See FA03/Sch4/para8.

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