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You pay SDLT if the consideration given in exchange for the share transfer is more than the current SDLT threshold for the property type.
Example: the owner of a property valued at £500,000 with an outstanding mortgage of £400,000 transfers half the property to their partner . Their partner takes on 50% of the mortgage (£200,000).
HMRC charge SDLT on the amount paid for a property.
By taking liability for the mortgage, the owner’s partner has given consideration of £200,000 (50% of £400,000) for their share of the property which is £1,500 SDLT (0% of £125,000 + 2% of £75,000).
You don’t need to pay SDLT or tell HMRC about freehold land and property transactions with a total chargeable consideration of less than £40,000,