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HMRC internal manual

Stamp Duty Land Tax Manual

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.

The transfer in this instance is not notifiable as there is no chargeable consideration.

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 and the daughter assumes responsibility for that mortgage.

Stamp Duty Land Tax (SDLT) is due at the rate of 1% on that outstanding mortgage sum. This transaction is notifiable.

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 SDLT due on this £100,000 chargeable consideration as it does not exceed the tax threshold but the transaction is still notifiable.

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