12:19 PM, 16th May 2022, About 2 years ago 3
I own a BTL property in my sole name and intend to transfer the title into joint names with my partner and transfer a small percentage of equity (10-15%). We are not married so it’s not a transfer between spouses.
The property is mortgaged and the transfer is because all our other BTL properties are in joint names, it can help manage our rental income within the 20% tax rate and in the longer term assist with reducing CGT.
My understanding is that a mortgaged transfer is viewed by HMRC as ‘consideration’ and if the amount of this consideration is over £125k standard SDLT is due and if over £40k additional SDLT (3%).
I was intending to transfer a relatively small equity share of (10-15%).
My understanding is that if this % of the property value (the consideration) is below the £40k additional SDLT threshold then no SDLT will be due.
Does anyone know if this is the correct understanding?
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