SDLTM04040A - Scope: How much is chargeable: Non-cash consideration: Assumption or release of a debt FA03/SCH4/PARA8: Examples
A property is transferred by V into the ownership of V and P in equal shares subject to a subsisting mortgage.
P assumes liability for all or part of the debt.
Notwithstanding P’s actual liability, which is probably for all of the debt, P is treated as assuming debt equal to 50% of the amount owing.
This is because he is treated as owing none before the transaction and 50% after it.
A property is owned by V and P in 70:30 shares.
It is transferred to the sole ownership of P subject to a subsisting mortgage.
Assuming V is released from the debt or P agrees to indemnify V there is an assumption of debt by P.
P is treated as assuming debt equal to 70% of the amount owning.
This is because P is treated as owing 30% before the transfer and 100% after it.