Transfer of Equity: SDLT Rules
A transfer of equity changes who owns a property without a full sale. SDLT may arise on any consideration given — including mortgage debt assumed. Pure gifts with no debt are generally exempt.
Last verified: April 2026 | Source: GOV.UK
Key Takeaways
- •SDLT only arises on a transfer of equity if there is chargeable consideration — cash paid or mortgage debt assumed.
- •A pure gift with no debt taken on triggers no SDLT.
- •Transfers between spouses and civil partners are generally exempt from SDLT.
- •Court order transfers on divorce or dissolution are also exempt.
- •Higher rates may apply if the transferee already owns another property.
In this article
What Is a Transfer of Equity
A transfer of equity occurs when a property's ownership changes — for example, adding a new co-owner, removing a departing owner, or gifting a share — while at least one of the original owners remains on the title.
This distinguishes it from a full sale, where all existing owners are replaced. Common situations include:
- •Adding a partner or spouse to the title deeds
- •Removing one name after a separation or divorce
- •A parent gifting a share of their home to a child
- •Transferring a property into or out of a company
When SDLT Applies
SDLT arises on a transfer of equity only when there is chargeable consideration. Consideration includes any cash paid and any mortgage debt assumed by the incoming owner.
If a transfer is a pure gift — no money changes hands and no debt is assumed — there is no chargeable consideration and no SDLT is due.
Chargeable Consideration in Transfers
In a transfer of equity, chargeable consideration typically consists of:
- •Any cash payment made to the outgoing owner
- •The portion of outstanding mortgage debt assumed by the new owner
The chargeable consideration is the full amount of mortgage debt assumed — not just the incoming owner's new share of the debt. If Person A adds Person B to a £300,000 mortgage, Person B's chargeable consideration is £150,000 (their share of the debt).
Spouse and Civil Partner Exemption
Transfers of property between spouses and civil partners are generally exempt from SDLT — provided no one else is involved in the transfer. This applies whether the property is a gift or a transfer for consideration.
However, the exemption does not override the chargeable consideration rules entirely. If the receiving spouse takes on a mortgage debt as part of the transfer, SDLT may still be due on the assumed mortgage — even between spouses — unless the transfer falls under one of the specific exemptions.
Divorce and Separation Transfers
Transfers of property that take place pursuant to a court order or agreement in connection with divorce, dissolution of civil partnership, or judicial separation are generally exempt from SDLT — regardless of any consideration involved. This provides a specific exemption for transfers carried out as part of formal separation proceedings.
Gift Transfers
A property transferred as a pure gift — with no cash paid and no debt assumed by the recipient — has no chargeable consideration. No SDLT is due.
However, the receiving person must consider whether holding a beneficial interest in the gifted property will affect their SDLT position in future purchases — for example, their first-time buyer status or liability to the higher rates surcharge.
Worked Examples
Example A: Adding a partner who takes on half the mortgage
- Property value: £400,000
- Outstanding mortgage: £200,000
- Partner joins title and takes on half the mortgage (£100,000)
- Chargeable consideration: £100,000
- SDLT on £100,000 (standard rates): 0% on all — below £125,000 threshold
- Total SDLT: £0
Example B: Partner takes on full £300,000 mortgage
- Outstanding mortgage: £300,000 (partner assumes entire debt)
- Chargeable consideration: £300,000
- SDLT on £300,000 (standard rates):
- 0% on £125,000 = £0
- 2% on £125,000 = £2,500
- 5% on £50,000 = £2,500
- Total SDLT: £5,000
Example C: Pure gift — no mortgage
- Property transferred to child as a gift
- No cash paid, no mortgage on the property
- Chargeable consideration: £0
- Total SDLT: £0
Official Government Source
For official HMRC guidance on land and property transfers:
SDLT: land and property transfers — GOV.UKFrequently Asked Questions
What is a transfer of equity?
A transfer of equity occurs when the ownership of a property changes — for example, adding a partner to the title deeds, removing a name after separation, or transferring a share as a gift. It differs from a full sale in that at least one of the original owners remains on the title.
Is stamp duty due on a transfer of equity?
SDLT is due only if there is 'chargeable consideration' for the transfer. Consideration includes any money paid plus any mortgage debt assumed by the new owner. If the transfer is a pure gift with no debt taken on, no SDLT is due. If £300,000 of mortgage is assumed, SDLT is calculated on £300,000.
Are transfers between spouses exempt?
Transfers of property between spouses and civil partners are generally exempt from SDLT, provided no one else is involved in the transfer. However, if the receiving spouse takes on a mortgage as part of the transfer, SDLT may still apply on the assumed debt.
In this article
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Calculate My Stamp Duty UK to help buyers understand the complex world of property transaction taxes.