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I'm currently remortgaging on my main residence, at the

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Hi,
I'm currently remortgaging on my main residence, at the same time bringing my wife on to the mortgage (sole to joint mortgage), hence there is a transfer of equity.
I also have another property (furnished holiday let) in my name only.
Since the new additional stamp duty came in to effect in April, does this mean we are liable to pay 3% duty on half of the remortgage value, despite not actually purchasing another property, simply remortgaging?
If so, is there any way around this, such as staying with my existing mortgage company and adding my wife to the mortgage at a later date (ie gifting the transfer of equity)?
If we decide to move house in the future will this catch up with us, hence paying more additional stamp duty as the consideration will be correspondingly higher on a more expensive home (should we change at that time from sole to joint mortgage)
Kind Regards,
Richard
Submitted: 11 months ago.
Category: Tax
Expert:  bigduckontax replied 11 months ago.
Hello Richard, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. I assume that the property is located in England; please confirm? The Gov UK web site has the following information regarding the 3% surcharge on Stamp Duty Land Tax (SDLT): 'From 1 April 2016, you’ll usually have to pay 3% on top of the normal SDLT rates if buying a new residential property means you’ll own more than one.' The acquisition of new ownership is by your wife who currently owns no landed property not you so the higher charge would appear not to apply. In the longer term should you could be caught unless in the interim you dispose of your buy to let in between. I do hope that I have shed some light on your question.
Customer: replied 11 months ago.
Hi Keith, thanks for your answer.
The property is located in England.
I was under the impression that the additional SDLT is payable even if only one party to the mortgage has an existing property?
Thanks
Richard
Expert:  bigduckontax replied 11 months ago.
Good, stamp duty is, as you may know, delegated to Holyrood. Gov UK guidance is: 'If you take a bigger share but don’t pay anything in return, there’s no ‘consideration’ given including taking on liability for a mortgage. You won’t pay SDLT, even if the value of the extra part of the share is more than the SDLT threshold. You don’t need to tell HMRC about the transaction.' You are giving a share to your wife and in any event it is an inter spousal transfer; generally outside the scope of UK taxation. Further where mortgages are involved: 'A husband decides to transfer a half share in a property he owns to his wife. He doesn’t take a cash payment for this share, but there’s an outstanding mortgage on the property. The amount outstanding is more than the current threshold, so SDLT is payable, even if the husband keeps the mortgage. He must tell HMRC about the transaction.' Your wife still only owns one property so the surcharge should not apply. Your original question was on the subject of the surcharge.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3356
Experience: FCCA FCMA CGMA ACIS
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Customer: replied 11 months ago.
Thank you Keith,
Very informative.
Expert:  bigduckontax replied 11 months ago.
Thank you for your support.

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