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Stamp Duty Land Tax: Transfer of ownership of property

including wills and probate
Kobayashi
Posts: 2
Joined: September 2nd, 2021, 8:21 am

Stamp Duty Land Tax: Transfer of ownership of property

#440526

Postby Kobayashi » September 8th, 2021, 9:15 am

Hi,
I've always valued the advice and commentary posted on the forums. I'm writing now to ask for advice or thoughts about a problem we are trying to unpick at the moment.

In the early 1990s, my sister helped my mother get on the property ladder by jointly buying a property with her, as tenants in common. The main reason for the arrangement was that even though my mother could (and did) cover the mortgage alone, her income did not meet the earnings threshold for the amount she wanted to borrow. A couple of years later my sister bought her own property and moved out. Our mother is now thinking of downgrading to a smaller property. Unconnected to this, my sister is thinking of upgrading to a larger property.

In view of SDLT, what would be the most straightforward way to organize the transfer my sister's "share" of my mother's property to my mother? There isn't any monetary transfer involved with this, as our mother has always paid the mortgage alone.

Thank you very much!

Clitheroekid
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Re: Stamp Duty Land Tax: Transfer of ownership of property

#441312

Postby Clitheroekid » September 10th, 2021, 4:42 pm

If your sister gifts her share in the property to your mother then (assuming the mortgage on the property has now been repaid) there will be no SDLT payable.

Kobayashi
Posts: 2
Joined: September 2nd, 2021, 8:21 am

Re: Stamp Duty Land Tax: Transfer of ownership of property

#441647

Postby Kobayashi » September 12th, 2021, 2:38 pm

Clitheroekid wrote:If your sister gifts her share in the property to your mother then (assuming the mortgage on the property has now been repaid) there will be no SDLT payable.


This is very helpful. Thank you!

Peanutte
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Re: Stamp Duty Land Tax: Transfer of ownership of property

#454376

Postby Peanutte » October 30th, 2021, 4:36 pm

Could there be any CGT liability?

Thanks.

Lootman
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Re: Stamp Duty Land Tax: Transfer of ownership of property

#454413

Postby Lootman » October 30th, 2021, 7:55 pm

Peanutte wrote:Could there be any CGT liability?

Yes the donor of a property or share of a property is held potentially liable for the CGT due on the profit from that asset transfer, even if it were given away for free. The transfer is assumed to have been sold at its market value.

There is an exemption for gifts between spouses. And if the property was the PPR of the donor then no CGT would be due either.


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