My client wants to transfer 50% of his two buy-to-let properties to his wife. Each have outstanding mortgages of £300,000. Would there be stamp duty land tax (SDLT) payable on this, including higher rate stamp duty. Also, is this defined as a linked transaction?

When transferring a share of a residential property as a gift, this is set out in Finance Act 2003 Sch 4 with HMRC guidance at SDLTM03600.

Your client’s debt in terms of the mortgage would be a chargeable consideration if it is going to be transferred into joint names with his wife. Therefore, this would equate to £150,000 for each outstanding mortgage.

The residential SDLT rates would then be used, considering the bands. When applying the pre-April 2025 rates, it would be assumed no SDLT would be payable due to the first band of up to £250,000 at zero percent. However, it is important to consider linked transactions and how this applies.