Am I liable to pay stamp duty on half of a £140,000 mortgage?

Q I moved into my partner’s house three years ago. We now wish to put my name on the deeds on a joint tenancy basis. We are going to take out a new mortgage in both our names and pay a solicitor to add my name on the deeds. No money will exchange hands as a result of this transaction. However, I have invested a lot of money in the house in terms of paying for an extension/loft conversion 18 months ago. Although we haven’t had it valued recently, we estimate the house is worth about £300,000. The mortgage is for about £140,000. Am I liable to pay stamp duty? SS

A Had the amount of the mortgage you are taking on been more than the current £125,000 stamp duty land tax (SDLT) threshold, yes you would have been liable to pay it. However, assuming that you are taking on half the £140,000 mortgage, you won’t have to pay SDLT because the amount falls below the £125,000 threshold. But if you are taking on £140,000 of mortgage – ie the total mortgage is £280,000 – then there will be an SDLT bill of 1% of £140,000 which is £1,400.

SDLT is payable if consideration is given in exchange for receiving part ownership of a property. In SDLT terms, taking on liability part of a mortgage comes under the heading of “consideration given” even though no money will change hands

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