Q&As

When transferring Property X from AB to A and Property Y from AB to B for no monetary consideration, would the two transfers be considered a gift for SDLT purposes, or would the other transfer be deemed consideration? The properties are wholly owned as 50:50 tenants in common, there would be no contract between A and B, and the transfers would be completed on different days.

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 07/11/2018

The following Tax Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • When transferring Property X from AB to A and Property Y from AB to B for no monetary consideration, would the two transfers be considered a gift for SDLT purposes, or would the other transfer be deemed consideration? The properties are wholly owned as 50:50 tenants in common, there would be no contract between A and B, and the transfers would be completed on different days.

When transferring Property X from AB to A and Property Y from AB to B for no monetary consideration, would the two transfers be considered a gift for SDLT purposes, or would the other transfer be deemed consideration? The properties are wholly owned as 50:50 tenants in common, there would be no contract between A and B, and the transfers would be completed on different days.

Stamp duty land tax (SDLT) is payable where all or part of an interest in land or property is transferred to a person for monetary value, known as chargeable consideration. If the transfer is a gift, meaning there is no consideration, SDLT does not ordinarily apply. SDLT is charged on money or monies worth, given directly or indirectly by the purchaser, or a person connected with the purchaser for the land or other subject matter of the transaction.

In this scenario, two properties are to be transferred from being jointly-owned into the sole names respectively of each of the joint owners, on different days, with no payment changing hands. Ostensibly therefore, this amounts to two separate gifts with no consideration

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