Stamp Duty Land Tax (SDLT) case study for an unmarried couple looking at a transfer of equity and remortgage. This SDLT case study is one of many that I have published that can either be found on my Slideshare profile or via my website: http://www.annlhumphrey.com/case-studies/.

1. SDLT Case Study – Transfer of
Equity and Remortgage
Ann Humphrey
July 2016
Authorised and Regulated by the Solicitors Regulation Authority SRA Number 76681

2. This case study on Stamp Duty Land Tax
and the transfer of equity & remortgage is
based on advice provided to a client in
September 2015.
For more case studies covering stamp duty
land tax, property tax, business tax and VAT
please visit Ann’s website:
http://www.annlhumphrey.com/case-studies/
SDLT – Transfer of Equity and Remortgage
July 2016
At the time of publication
this case study was
technically accurate
however, as tax law and
practice change rapidly,
you should take specific
advice before taking any
action.

4. Mr A and Miss B, who were not married,
wished to rearrange their financial affairs. The
main residence which they shared and which
had been funded by Mr A, was valued at around
£900,000. The existing mortgage was £800,000
and the couple were looking to move it to
another lender. The house and the mortgage
were both in the name of Miss B. The new
lender insisted on both Mr A and Miss B being
on the title and taking out the new mortgage so
there had to be a transfer of equity.
July 2016
SDLT – Transfer of Equity and Remortgage
At the time of publication
this case study was
technically accurate
however, as tax law and
practice change rapidly,
you should take specific
advice before taking any
action.

5. Mr A had the means to repay £200k of the
mortgage. The proposal was that Mr A give
£200,000 to Miss B to reduce the current
mortgage balance to £600,000. On the transfer
of the property into joint names and the taking
out of the new mortgage, Mr A and Miss B would
make a declaration of trust recording that, from
that date, the beneficial ownership of the
property was 75% Miss B and 25% Mr A.
July 2016
SDLT – Transfer of Equity and Remortgage
At the time of publication
this case study was
technically accurate
however, as tax law and
practice change rapidly,
you should take specific
advice before taking any
action.

6. The assumption of a debt is consideration for
SDLT purposes by reason of paragraph 8 of
Schedule 4 FA 2003. The deemed
consideration for SDLT purposes for the transfer
of the 25% interest in the property by Miss B to
Mr A would be 25% of £600,000, £150,000 (the
percentage of the mortgage assumed by Mr A
being treated as consideration).
July 2016
SDLT – Transfer of Equity and Remortgage
At the time of publication
this case study was
technically accurate
however, as tax law and
practice change rapidly,
you should take specific
advice before taking any
action.

7. The declaration of trust needed to take effect on
the transfer into joint names and the gift by Mr A
of the £200,000 must not be consideration for
the transfer of the 25% share by Miss B. As
there would be a small SDLT charge (£500) an
SDLT1 (land transaction return) needed to be
completed.
July 2016
SDLT – Transfer of Equity and Remortgage
At the time of publication
this case study was
technically accurate
however, as tax law and
practice change rapidly,
you should take specific
advice before taking any
action.

9. For more case studies covering stamp duty
land tax, property tax, business tax and VAT
please visit Ann’s website:
http://www.annlhumphrey.com/case-
studies/
SDLT – Transfer of Equity and Remortgage
July 2016
To contact Ann please
use this link to send an
email:
ann@annlhumphrey.com

10.  Solicitor and tax specialist with over 30 years
experience
 Areas of expertise: Stamp Duty Land Tax
(SDLT), Business Tax and VAT
 Set up her own practice after 16 years in the
City
 Author of ‘VAT and Property’ published in
2015 and co-authored ‘Stamp Duty Land
Tax: a practical guide for lawyers’ which is
due to be updated in 2016
 To visit Ann’s website click here:
www.annlhumphrey.com. To send an email
please use this link: Send email
About Ann…
Authorised and Regulated by the Solicitors Regulation Authority SRA Number 76681