• Gifting Property To Avoid Additional 3% SDLT

    By Guest on 22nd Jul 2020

    Hi, I have a property that I live in and I want to purchase a new property to become my main residence, but want to keep my existing one and turn it into a rental property.

    My understanding is that there is no SDLT on a gift without consideration, so could I gift my first property to a family member or friend, then purchase the second property under normal SDLT rates (as it'll be my only property). Then the first house is then gifted back to me, again for zero consideration, so no SDLT payable.

    Is that too simple, or are there rules in place to avoid this scenario?

    Many thanks

  • 1 Answers

    By NotaryExpress on 23/07/2020

    Correct providing there is no mortgage on the property being gifted. Make sure of course the transaction is not simply a scheme designed to avoid tax (which unfortunately it sounds like is the case) otherwise you risk being caught out by HMRC's anti-tax avoidance rules.

    www.notaryexpress.co.uk

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