Sign up to get our free landlord tax strategies


To receive our seven FREE landlord tax saving strategies just simply complete the form below and the first strategy will be emailed to you immediately.

Sign up to get our free landlord tax strategies

Thank You!

Seven FREE property tax busting strategies reveal the secrets of how to legitimately beat the taxman and boost your property profits!
View All Questions

Watch out for stamp duty when transferring property

Question I currently own a property in my sole name, but am about to transfer 50% ownership to my brother. I currently have an outstanding £200,000 mortgage.

Is there a stamp duty liability when I transfer the mortgage into joint names'? If yes will it be 1% on the effective transfer of £100,000?

If I was transferring 50% to my husband (instead of to my brother in the previous example) then would stamp duty still be payable?

Arthur says
The answer to both questions is YES.

Usually there is no stamp duty on gifts, unless the gift is of mortgaged property, in which case stamp duty is charged on the amount of the mortgage as if it were a sale, because the mortgage debt is treated as consideration for the transfer.

This applies when the recipient takes over responsibility for the mortgage. But it will not apply if the person or spouse making the transfer undertakes to pay the mortgage.

Case Study
Howard has purchased a property and already incurred a charge of £2,100 in stamp duty.

Two years after the purchase he marries his long-term girlfriend Betty. He decides to move the property into joint names, where they will have equal 50:50 ownership of the property.

The outstanding amount on the mortgage at the time of transfer is £200,000.

By transferring the mortgage into joint names, Betty will be liable to pay an additional £1,000 in stamp duty.

Landlord Tax Secrets Get our SEVEN FREE Landlord Tax Saving Strategies - Guaranteed To Slash Your Property Tax Bills!
Click here for more.

Got a burning tax question?

Why not submit a tax question to our tax advisors

Ask a Question