1. Home
  2. UK Finance Discussions
  3. Stamp Duty

Stamp Duty

A colleague of mine passed on a strange one to me and I was wondering if anybody has come across anything similar. He has been arranging a re-mortgage for a client. The client wanted to add his girlfriend onto the mortgage, no extra cash is being raised. Pretty straight forward. The lenders solicitors/legal department are requesting funds to pay the stamp duty because the equity transfer to the girlfriend, is over the stamp duty threshold. Other brokers I have spoken believe this to be incorrect. Any thoughts?

Reply to
Karl
Loading thread data ...

A gratuitous transfer (for love and affection) does not attract stamp duty.

Simply putting a new debtor onto a mortgage without changing title (not, I think what is contemplated) does not attract stamp duty in the UK. (New York City has a mortgage tax: that's another story.)

There is probably something missing to this story. Lenders' solicitors should not be making an elementary mistake. Perhaps the girlfriend is contributing funds?

If they marry, the issue will go away.

Reply to
sufaud

If the g/f is being added to the title to the property, which would likely be the case, (otherwise why would she want to take on the mortgage liabilitiy?!), then I can see a case for the equity share falling liable for CGT. Otherwise BTLs which have made massive profits over the years could just be equity shared with partners, friends, anyone really; reducing taxable liablities. Clearly evasive!!

MC

Reply to
news

In message , " snipped-for-privacy@talktalk.net" writes

But those BTL transfers would be subject to CGT calcs wouldnt they? That wouldnt be evasive at all?

Reply to
john boyle

Not CGT. This is presumptively a primary personal residence.

Perhaps under the new rules the Land Registry is claiming that becoming jointly and severally liable under the mortgage is "consideration" for the transfer of the proprerty and that consideration exceeds £60,000.

Clarification may be available from the stamp duty hotline: 0845 603

0135.

Question #12 of the tax return asks, "what form does the consideration take""what form does the consideration take"

Go to:

formatting link
To get an explanation or interpretation, it seems that the OP may need to submit a "SDLTB 8 letter" There are penalties beginning 30 days after a taxable transaction, so time is of the essence.

The stamp duty revisions are yet another stealth tax instituted by New Labour. Watch for hefty "user fees" to come, for every service sought from the government.

Reply to
kuacou241

In message , snipped-for-privacy@yahoo.com writes

I was referring to the BTLs to which the previous poster had referred. They are not PPRs and CGT would apply.

>
Reply to
john boyle

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.