My husband and his brother own a property in Manchester. My husband owns two-thirds and his brother owns one-third. My husband’s brother is gifting his share to me, so the property will be owned by myself and my husband. The property is worth £550,000 with a first charge loan of £130,000 and a second charge loan of £138,300 still remaining. How much stamp duty land tax (SDLT) will be payable?

Arthur Weller replies:
If the gift of the 1/3 property interest is simply a gift for no consideration, then there is no SDLT on this transaction. However, if I understand you correctly, you are taking over responsibility for 1/3 of the existing mortgage on the property from your brother-in-law. If so, this is deemed chargeable consideration for SDLT purposes (i.e. 1/3 of £(130,000 + 138,000) = £89,333). If you or your husband already own a property the 3% extra SDLT (second property) charge will apply, and you will have to pay SDLT of £2,680. If the extra 3% SDLT charge does not apply, there will be no SDLT on this transaction, because it is under the £125,000 threshold.