Can SDLT be avoided on the transfer of a property subject to mortgage?

[Patrick Cannon]

The wording of the declaration of gift/trust will determine the position but in principle the donee can take his or her interest in the property subject to the existing charge but without assuming any personal liability for it and so on any subsequent sale would receive only their share of the equity after the charge had been repaid.
Lender’s consent should be obtained and if it is willing to grant consent on these terms then it is likely to require some form of consent to the charge from the donee and the wording of this document will need to be carefully drafted to avoid an SDLT charge on the amount of the loan.

[William Chalk]

Thank you very much Patrick. I can see this is a tricky area.
Is there a practitioner text on SDLT that covers this area and which you might recommend please?

[Patrick Cannon]

Well there is my book Tolley’s Stamp Taxes 2015/16 at 3.1 which discusses debt assumption issues. A new edition for 2016/17 is due to be published any day now so if you are thinking of buying it I suggest you wait for the new edition.

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