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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15580
Experience:  International tax
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I currently own a property worth circa £550k with a £190k mortgage.

Customer Question

I currently own a property worth circa £550k with a £190k mortgage. My Mother owns a property with £450k which she is currently marketing for sale. She is then going to take ownership of my London property and I will be buying somewhere new.
I am trying to find a way of transferring the ownership of my London property to my mother and purchasing a new property in London without paying stamp duty twice. My mother will also be lending me just under £300k to purchase the new property.
The end result will be we own two different properties and I want to understand the best tax implication for myself.
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
As you most likely know, Stamp Duty Land Tax (SDLT) may become payable when all or part of an interest in land or property is transferred from one person to another if anything of monetary value is given in exchange. Your mother lending you £300k could be seen as payment for the property.
If you were not receiving any amount from your mother then the stamp duty tax would not apply.
Expert:  TaxRobin replied 3 years ago.
JACUSTOMER-s79d4zs5- Last Viewed on 26/08/2014 at 17:03

Property or land may be given away or the ownership transferred to another person for no 'chargeable consideration'. This means there is nothing in money or monies worth given for the transfer.Your mortgage will be picked up by your mother so that negates the no 'chargeable consideration' on it;s own. The SDLT would be on that amount even if the loan was overlooked for consideration.