Updating post from Reddit.
I’m transferring 99% of the flat I own in my personal name to my wife; for tax purposes (I am a higher rate earner and she doesn’t even use up her 12,500 allowance). We are doing this through remortgage from Consent to Let into Buy to Let.
Solicitor is now saying I should pay ADS (Scotland) despite this being our only property and we live with family. Neither I nor my wife own any other property.
No money is changing hands and she is giving me nothing in return.
The property is valued at £255,000 and we have obtained a mortgage for £142,000
I think the stamp duty should be £1,750 (as wife is a first time buyer).
Sorry I dont know scotland - You probably want to have a discussion with a tax adviser. To transfer 99% to the Mrs you would tyicaly use Form 17, not sell 99% of the property to them. That doesn't incur SDLT.
Form 17 is to let HMRC that we have unequal shares in a property. I am not selling 99% to the wife, I’m transferring it to her at £0.
Yeah, but why transfer/sell 99% to wife? When form 17 exists.
BTW, I think you can sell for £0 but the authorities will treat it as open market value for calculations.
Form 17 is in the eyes of HMRC. what about the lender?
Do you need to do this? I’m sure there is a question on your self assessment are you transferring any money over to a lower rate tax paying spouse (probably not those exact words)
Speak to an accountant.
Stamp duty must be payable at purchase otherwise the title cannot be registered.
You own it. Nobody is buying it your wife owns it by just being married to you. We just changed the deeds.
So did you have to pay stamp duty to transfer to her, how did you go about doing it?
I am adding her to the mortgage and that is fine - but now they are saying there is stamp duty and ADS payable. How was yours calculated?
No stamp duty we got married and I went on the deeds of her house / our house and she went on the deeds of my house / our house.
Thanks. Did you both have your own properties prior to marriage?
Yes. Hence the change of deeds everything became jointly owned.
If it’s similar to England, you shouldn’t need to pay much, if any.
Things to check because it’s Scotland and I’m not familiar with it;
it’s based on consideration not value. Your wife will not pay for the share and only take on 99% of the mortgage . It’s this value you pay based on.
additional stamp duty should not be payable on transactions between spouses if the same as England.