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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.

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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 on that outstanding mortgage sum. This transaction is notifiable.

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Example 3

Husband wishes to transfer half of his only residential 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)