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UK Property Tax Portal
UK Property Tax Q&A
Would this transfer attract the additional 3% stamp duty land tax?
Question
If I transfer a very small share of my buy-to-let property to my child to use up my capital gains tax annual allowance, does this mean that a property bought by the child would attract the 3% stamp duty land tax (SDLT) increase as a second property? Arthur Weller replies: If you look at www.gov.uk/government/uploads/system/uploads/attachment_data/file/570876/SDLT_Higher_rates_for_additional_properties.pdf (page 27, Q&A 7), you can see that when the child afterwards buys their own property they will not have to pay the extra 3% SDLT if the very small share of the buy-to-let that they own is worth less than £40,000.
Property Tax Insider
This sample question and answer is taken from Property Tax Insider, a monthly UK tax saving magazine for landlords and property investors.
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