9:24 AM, 17th March 2020, About 2 years ago 12
I am led to believe spouse property transfers are Capital Gains exempt. I also understand if the property transfer is NIL, there is no SDLT payable.
However, if the property is mortgaged, SDLT is payable on the amount of mortgage transferred. i.e. If property is owned 1/99 and you want to transfer 49% making ownership now 50/50. 49% of mortgage would be subject to SDLT.
I understand SDLT additional dwellings does not apply to spouse transfers.
Please correct me if any of the above is incorrect. For example, a £400,000 mortgage @ 49% transfer would be £196,000 transfer, so would attract SDLT of £1,420.
So finally, here’s the question, assuming SDLT is transaction based; Could I transfer 25% today and the remaining 24% tomorrow. Therefore, two transactions each below SDLT £125,000 threshold meaning no SDLT due. This would be achieved by means of Deed of Trust.
I have several properties to transfer, but I am discounting the multiple dwellings relief SDLT as the remaining properties do not attract SDLT, and the multiple dwellings relief has a minimum rate of 1%
Previous ownership structure of 1/99 was used as I was a high earner. This is no longer the case so need to level the playing field for tax purposes.
Previously Form 17 filed with HMRC. I understand as soon as you change legal/beneficiary ownership this nulls Form 17 immediately. Can I then assume I don’t need to file new Form 17 to reinstate the default 50/50 rule, but maybe sensible to note on next Self-Assessment?
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