SDLTM00330a - Scope: What is chargeable

Land transactions: Is notification required? Examples

Example 1

Father gifts property worth £200,000 to his son for no monetary consideration. There is no mortgage on the property therefore no chargeable consideration is passing.

The transfer in this instance is not notifiable .

Example 2

Mother gifts property worth £200,000 to her daughter for no monetary consideration. There is however a mortgage on the property of £ 180,000 at the date of the transaction.

Stamp duty land tax is therefore due at the rate of 1% on this outstanding mortgage sum. This transaction is notifiable on form SDLT1.

Example 3

Husband wishes to transfer half of his property worth £300,000 into his wife’s name. No cash changes hands but the property is subject to a mortgage for £200,000.

As half of the property is being transferred, half of the mortgage debt is being taken over by the wife.

There is no stamp duty land tax due on this £100,000 chargeable consideration as it does not exceed the tax threshold but the transaction is still notifiable on form SDLT1.

See SDLTM04040 for further guidance on FA03/SCH4/PARA8(1A)