I have a married couple who own a number of rental properties jointly as joint tenants. As wife is earning less than husband, they want to enter into declarations of trust reciting larger percentage owned by wife (95% /5%) for income tax purposes. Content on that side of things and the form 17 which needs to be filed with HMRC. However, the properties are all subject to mortgages and I am having a crisis of confidence regarding Stamp Duty Land Tax. All the examples and HMRC guidance seem to indicate that where a recipient gives consideration by taking on a debt or releasing/indemnifying there may be stamp duty land tax to pay depending on the sum involved. In this case however, despite the change in beneficial ownership, both parties will remain jointly and severally liable to the mortgages both before and after the transaction in which case there is no ‘consideration’ for SDLT? Am I being daft or do I need to consider SDLT?
Firm: Wright Hassall