Transfer of Equity Stamp Duty Calculator 2026
Calculate SDLT when transferring property ownership, including adding/removing partners, divorce settlements, and family gifts
Taking over part of a mortgage? That can mean stamp duty
A transfer can owe stamp duty even when no cash changes hands. Divorce transfers are usually exempt.
Chargeable Consideration Breakdown
Note: SDLT is charged on the consideration (what is paid), not the property value
SDLT Calculation
| Band | Amount | Rate | Tax |
|---|---|---|---|
| ££0 - ££125,000 | £100,000 | 0% | £0 |
Total SDLT Payable
£0
Effective rate on property value
0.00%
Effective rate on consideration
0.00%
Disclaimer: This tool does not constitute financial advice. We do not recommend taking actions based solely on these results. The calculator makes assumptions and results may be inaccurate due to changes in government policy, interest rates, or personal circumstances. You use this information at your own risk. We can't guarantee to be perfect, so do note you use the information at your own risk and we can't accept liability if things go wrong. For official guidance, visit Gov UK.
What Is a Transfer of Equity?
A transfer of equity is the legal process of adding or removing someone from the title deeds of a property. This commonly happens when:
- Adding a partner or spouse to the property title
- Removing an ex-partner after divorce or separation
- Gifting property to family members
- One co-owner buying out another's share
- Restructuring property ownership for estate planning
Unlike a standard property purchase, you're not buying the entire property. You're transferring a percentage of ownership. However, Stamp Duty Land Tax (SDLT) may still apply depending on the circumstances. Use our stamp duty calculator for standard purchase calculations.
Understanding Chargeable Consideration
The key to calculating SDLT on a transfer of equity is understanding that stamp duty is NOT charged on the property's market value. It's charged on the chargeable consideration.
Chargeable consideration is what the new owner actually pays to acquire their share. This includes:
- Any cash payment made to the existing owner(s)
- The share of the outstanding mortgage assumed by the new owner
Worked Example
Scenario: Sarah is adding her partner Tom to the deeds of her £400,000 house. She's transferring a 50% share. The outstanding mortgage is £200,000.
Calculation:
- Property value: £400,000 (not relevant for SDLT)
- Equity transferred: 50%
- Mortgage share assumed by Tom: 50% of £200,000 = £100,000
- Cash payment: £0
- Total chargeable consideration: £100,000
SDLT is calculated on £100,000, not £400,000
Because £100,000 is below the £125,000 threshold, no SDLT is payable in this case.
Even if no cash changes hands, if the new owner assumes part of the mortgage debt, that counts as consideration and may trigger an SDLT liability.
Spouses, Civil Partners and Divorce
There is no general SDLT exemption for transfers between spouses or civil partners. A transfer between a couple who are living together is chargeable on any money or other valuable consideration given, and the share of an existing mortgage that the person joining the title takes on is chargeable consideration. If the debt assumed is more than the nil rate band, SDLT is due.
The one marital exemption covers transfers made in connection with divorce, dissolution of a civil partnership, annulment or judicial separation. Those transfers are exempt whether they are made under a court order or by an agreement made in contemplation of the proceedings. The exemption exists because of the separation, not despite it.
Exempt Scenarios: Divorce, Dissolution and Separation
- Transferring sole ownership to one party as part of a divorce settlement
- Removing one spouse or civil partner from the title deeds during separation proceedings
- Court-ordered property transfers following divorce, dissolution, annulment or judicial separation
- Transfers agreed between the couple in contemplation of those proceedings, not only those a court orders
Chargeable Consideration Still Applies
Outside those separation cases, SDLT is charged whenever there is chargeable consideration, and being married makes no difference to that. Watch out for these scenarios where chargeable consideration does exist:
- Adding a spouse or civil partner to the deeds where they take on a share of an existing mortgage (the assumed debt is chargeable consideration)
- Any cash payment made for the share being transferred
- Transfers to unmarried partners where a mortgage share or cash changes hands
The test is not marital status: it is whether any chargeable consideration changes hands. Where nothing is paid and no mortgage share is taken on, there is no chargeable consideration and so no SDLT to pay, whatever the relationship between the parties. Where the transfer is made in connection with divorce or dissolution it is exempt even if a mortgage share is taken on.
Worked Example: Adding a Spouse to a Mortgaged Home
Scenario: Priya owns a home worth £400,000 with £300,000 outstanding on the mortgage. She adds her husband Ravi to the title with a 50% share and he takes on half the mortgage. No cash changes hands and the couple are living together.
Calculation:
- Mortgage share assumed by Ravi: 50% of £300,000 = £150,000
- Cash payment: £0
- Total chargeable consideration: £150,000
- 0% on the first £125,000 = £0
- 2% on the remaining £25,000 = £500
- SDLT payable: £500
Marriage does not remove this charge. Had the same transfer been made in connection with a divorce or dissolution, it would have been exempt.
If you are adding a spouse or civil partner to the property title and they will take on part of the mortgage, SDLT is calculated on the chargeable consideration: typically the share of the mortgage they are assuming, plus any cash. If there is no mortgage being shared and no cash changing hands, there is no SDLT. Review divorce property transfer for separation scenarios.
Common Transfer Scenarios
Adding a Partner to the Deeds
You own a property and want to add your partner's name. SDLT is based on:
- Cash payment they make to you (if any)
- Their share of the outstanding mortgage
Example: £300,000 property, £150,000 mortgage, transferring 50% = £75,000 consideration (no SDLT as below the £125,000 threshold). The same applies whether or not you are married.
Removing Ex-Partner After Divorce
If the transfer is made in connection with your divorce, dissolution, annulment or judicial separation, it is fully exempt from SDLT regardless of the property value or the mortgage being taken on. It makes no difference whether the court orders the transfer or you agree it in contemplation of the proceedings.
This exemption only applies to married couples and civil partners. Unmarried couples do not qualify, so a mortgage share or cash payment between them is chargeable in the normal way.
Parent Gifting to Child
If there's no mortgage, and no cash payment, the chargeable consideration is £0 (no SDLT).
However, if there's an outstanding mortgage that the child assumes, SDLT is calculated on that amount.
Example: Gifting a £500,000 property with £200,000 mortgage = £200,000 consideration = SDLT payable
Co-Owner Buyout
One co-owner buys out the other's share. SDLT is based on:
- Cash payment for their equity share
- Additional mortgage share assumed
Example: 50% share worth £150,000, paying £100,000 cash + assuming £50,000 mortgage = £150,000 consideration
Additional Property Surcharge
If the person receiving the equity share (the new owner) already owns another residential property, they may have to pay the 5% additional property surcharge on top of standard SDLT rates. See our transfer of equity guide for detailed scenarios.
This applies if:
- The recipient owns (or part-owns) another residential property anywhere in the world
- They're not replacing their main residence
- The chargeable consideration is £40,000 or more
Example
Tom already owns a buy-to-let flat. Sarah transfers 50% of her home to him (£180,000 consideration).
- Standard SDLT on £180,000: £1,100 (£55,000 taxable at 2%)
- Additional property surcharge (5%): £9,000
- Total SDLT: £10,100
The surcharge is calculated on the entire chargeable consideration, not just the amount above thresholds. This can significantly increase the SDLT liability.
Frequently Asked Questions
Do I pay stamp duty on a transfer of equity?
SDLT is payable on a transfer of equity only if there is chargeable consideration, which usually means a mortgage is being assumed or a cash payment is made. If the transfer involves no mortgage and no payment (for example, gifting a share to a spouse with no outstanding mortgage), there is no SDLT liability. The key factor is the value of any debt or payment the person being added to the title takes on.
How is stamp duty calculated when adding someone to a mortgage?
When adding someone to a property with a mortgage, SDLT is calculated on the share of the outstanding mortgage the new owner assumes. For example, if the mortgage is £200,000 and you add someone as a 50% owner, their chargeable consideration is £100,000 (50% of the mortgage). SDLT rates are applied to this figure, not the property value.
Is a transfer of equity between spouses exempt from stamp duty?
No. There is no general SDLT exemption for transfers between spouses or civil partners. A transfer between a couple who are living together is chargeable on any money paid and on any share of an existing mortgage the person joining the title takes on, because assumed mortgage debt is chargeable consideration. The one marital exemption covers transfers made in connection with divorce, dissolution of a civil partnership, annulment or judicial separation, and it applies whether the transfer is made under a court order or by agreement in contemplation of those proceedings. The exemption exists because of the separation, not despite it.
Does the additional property surcharge apply to transfers of equity?
The 5% additional property surcharge can apply to a transfer of equity if the person being added to the title already owns another property and the chargeable consideration is £40,000 or more. The surcharge is calculated on the chargeable consideration (mortgage share or payment), not the full property value. Marriage does not remove it: for the higher rates, a dwelling owned by a spouse or civil partner counts as if it belonged to the recipient while the couple are living together. A transfer made in connection with divorce or dissolution is exempt from SDLT altogether, so no surcharge arises on it.
What is the difference between a transfer of equity and a remortgage?
A transfer of equity changes the legal ownership of a property by adding or removing a name from the title deeds, and may trigger SDLT if there is chargeable consideration. A remortgage simply replaces one mortgage with another on the same property without changing ownership, and does not trigger SDLT. If you remortgage and transfer equity at the same time, SDLT applies only to the equity transfer element.
Reviewed by
Julie White
ACASDLT Expert since 1999Stamp Duty Land Tax Specialist
ACA and Tax Adviser with a career spanning nearly four decades, specialising in SDLT planning and advisory work since 1999.