Transfer of Equity
Stamp duty when adding or removing names from property ownership.
In this article
What is Transfer of Equity?
A transfer of equity is when you add or remove someone from the ownership of a property without selling it outright. Common scenarios include:
- Adding a partner or spouse to the deeds after marriage
- Removing an ex-partner after divorce or separation
- Transferring a share to a family member
- Removing a deceased person from joint ownership
When is Stamp Duty Payable?
SDLT is calculated on the "chargeable consideration" - any payment made for the transfer. This includes:
What Counts as Consideration
| Type | Counts? | Example |
|---|---|---|
| Cash payment | Yes | Buying out partner's share |
| Mortgage assumption | Yes | Taking on their share of debt |
| Gift (no payment) | No | Pure gift to family member |
| Spouse transfer | No* | Transfer between married couple |
*Transfers between spouses/civil partners are exempt
Common Scenarios
Adding a Partner (Not Married)
If you add an unmarried partner to your property deeds, SDLT may apply based on:
- • Any cash they pay for their share
- • Their share of the outstanding mortgage they take on
- • The 5% surcharge may apply if they own another property
Divorce/Separation
Usually No SDLT
Transfers between spouses/civil partners as part of divorce are exempt. The transfer must be made under a court order or separation agreement.
Removing Ex-Partner (Not Married)
SDLT May Apply
If you're buying out an unmarried partner, SDLT applies to any consideration (cash payment + their share of mortgage you take on).
Example Calculations
| Scenario | Consideration | SDLT Due |
|---|---|---|
| Add spouse to deeds | Any amount | £0 (exempt) |
| Gift 50% to child (no mortgage) | £0 | £0 |
| Add partner, they take 50% of £200k mortgage | £100,000 | £0* |
| Buy out ex-partner: £150k cash + £50k mortgage | £200,000 | £1,500 |
*Under the £125,000 threshold. If the new person owns another property, add 5% surcharge.
Additional Property Surcharge
The 5% surcharge can apply to transfers of equity if the person being added already owns another residential property. This catches situations like:
- Adding a partner who has their own home elsewhere
- Adult child with their own property being added to parents' house
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 Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.
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