No Consideration Transfer of Property
Discussion
My partner and I recently bought a cheap property at auction (£95k).
Unfortunately when we won the auction the contract was in my name only (contracts are exchanged at hammer fall). As the funds were from both our ISA's Mrs 98elise had to formally gift me her money for the purchase, however my solicitor said that after the completion I can then gift Mrs 98elise half of the property back.
The property is under the standard SDLT threshold, however as its not our main home we still paid the higher rate component at 3% at completion.
My solicitor said that the post completion transfer should not result in an additional high rate SDLT payment because there is no money changing hands. That seems to be true from what I've read, but I want to be sure that it's also true for the high rate component.
You might wonder why I don't just trust my solicitor? When we first spoke about the purchase she seemed to forget the higher rate component applied regardless of the threshold. Also the no consideration transfer was just mentioned in passing as something to deal with after the purchase. I want to be reasonably confident what the rules are before we start.
TL;DR
Just bought a property for 95k (not main home)
No mortgage involved
Paid 3% higher rate SDLT
Want to gift partner (not married) 50% of property
Is higher rate SDLT payable on the 50% transfer?
Unfortunately when we won the auction the contract was in my name only (contracts are exchanged at hammer fall). As the funds were from both our ISA's Mrs 98elise had to formally gift me her money for the purchase, however my solicitor said that after the completion I can then gift Mrs 98elise half of the property back.
The property is under the standard SDLT threshold, however as its not our main home we still paid the higher rate component at 3% at completion.
My solicitor said that the post completion transfer should not result in an additional high rate SDLT payment because there is no money changing hands. That seems to be true from what I've read, but I want to be sure that it's also true for the high rate component.
You might wonder why I don't just trust my solicitor? When we first spoke about the purchase she seemed to forget the higher rate component applied regardless of the threshold. Also the no consideration transfer was just mentioned in passing as something to deal with after the purchase. I want to be reasonably confident what the rules are before we start.
TL;DR
Just bought a property for 95k (not main home)
No mortgage involved
Paid 3% higher rate SDLT
Want to gift partner (not married) 50% of property
Is higher rate SDLT payable on the 50% transfer?
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