My clients have owned their house in equal shares since they bought it in 1997. It is subject to a mortgage also in joint names of £190 000.
They now wish to pay off the mortgage but because the wife is an American citizen this will apparently trigger a capital gains tax charge in America based on exchange rate movements.
If she gives her share of the house to the husband before the repayment this is reportable in the US but creates no tax charge. But what is the UK stamp duty land tax consequence?
Will he be treated as ‘buying’ her share for £95 000 and if so is there SDLT on that? They have no other property interests.
Taxation readers’ thought would be very much appreciated.
Query 20 484 – Yankee Doodle.
The husband is already liable for the...
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