SDLT on tenants in common split 99% to 1%

SDLT on tenants in common split 99% to 1%

14:12 PM, 6th February 2017, About 7 years ago 13

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I am in the process of splitting my buy to let property which I currently own 100% to my wife with 99% to her as she is a NIL taxpayer and 1% to me via tenants in common. I am currently re-mortgaging the property as my current deal is coming to an end. I have been told because I am transferring 99% to my wife I will have to pay Stamp Duty which I wasn’t aware. I was also told because I have another property which is a residential property the stamp duty is 5%. The outstanding mortgage amount is £125,500.split

I wanted to know if this is correct and if so is there another way to avoid the Stamp Duty.

Many thank


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Kais Malique

18:01 PM, 6th February 2017, About 7 years ago

Reply to the comment left by "Mark Alexander" at "06/02/2017 - 17:20":

Hi Mark,

Your right I should have got professional advice but at the time I couldn't.

If I get the mortgage offer re-issued under my name and then have the conveyancer drafts a Declaration of Trust for splitting the property would I avoid paying SDLT and have the property split 99% to my wife and 1% to me.

I appreciate your advice and time.

Mark Alexander - Founder of Property118

18:11 PM, 6th February 2017, About 7 years ago

Reply to the comment left by "Kais Malique" at "06/02/2017 - 18:01":

No opinion on any forum is relevant, your only protection is to have professional advice, in writing, from an appropriately regulated and fully insured professional adviser.

Why couldn't you seek such advice before now?

Harry Chunk

13:22 PM, 7th February 2017, About 7 years ago

Hi Kais

Mark Alexander is right, I think you need some professional advice on this.
It may be that you can avoid SDLT by
1. Using a deed of trust and passing your wife part of your beneficial interest.
2. Remortgaging your other property sufficiently to repay all the mortgage on this property. you could then gift her 50% free of SDLT as no SDLT is payable on gifted property free of mortgage.

£23,750 is a lot of tax to find especially when most of it can be avoided and can pay for a lot of advice to do just that.


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