If I transfer a property to my sister without payment, will we still be liable for stamp duty?

David Wesley-Yates
14 September 2018


I own a property with my sister as joint tenants and we both live in it. We have a small joint mortgage. I want to transfer the property to her name only (without selling it to her) so that I can buy another property without it being classed as a second home.

Do we have to pay stamp duty on the value of the property even if there is no exchange of money?



If you and your sister decide that she is going to take over ownership of the property, then she will have to pay Stamp Duty Land Tax (SDLT) if the value of your half that you are giving to her is more than £125,000.

The amount liable for SDLT includes any outstanding mortgage that your sister will be taking on from you.

For example, let’s assume you own the house equally, it is worth £400,000 and you have a combined £300,000 equity in the property and a £100,000 outstanding mortgage. If, as the new sole owner, your sister pays you cash for half the equity (£150,000) and becomes responsible for your half of the mortgage (£50,000), that means £200,000 is assessed for SDLT and your sister would owe £1,500 (0% of £125,000 and 2% of £75,000) to the taxman.

Stamp duty rates

Property purchase priceStamp duty payable on sole propertiesStamp duty payable on buy-to-let/additional properties
Up to £40,0000%0%
£925,001-£1.5 million10%13%
Over £1.5 million12%15%

Source: Money Advice Service.