I jointly own four buy-to-let properties in North Yorkshire, all with mortgages. The parties are unconnected. The market values are £160,000, £120,000, £120,000, £140,000 respectively. I want to take over the mortgages and properties by paying my business partner 50% of his equity in the properties. What amount will I pay stamp duty land tax (SDLT) on when purchasing the four properties? I then wish to set up a limited company and transfer the four properties into it. Will I have to pay SDLT on the newly-owned element twice?

Arthur Weller replies:
If you look at HMRC’s Stamp Duty Land Tax manual at www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm30100, you can see that what you are proposing is a ‘linked transaction’. So SDLT will be on all the properties together. It is not clear from the question, but it seems to me that you are taking responsibility for half of the mortgages, and half of the remaining equity. Basically, you are paying half of the current value of the properties. This equates to half of £540,000, which is £270,000. If afterward, you transfer to a limited company, the company will have to pay SDLT on the whole £540,000, in effect paying SDLT twice.