Q I personal a home outright. The property is a second residence and never my important residence. My daughter and son-in-law have a mortgage on their flat. We need to swap properties as I not want the home. No cash will change palms because the properties are of comparable values. Do we've got to pay stamp responsibility? Does my daughter need to have a unique mortgage or can she switch the one she has?
MK
A Sure, your daughter and son-in-law should increase a mortgage on your home as a way to repay the mortgage on their flat after they transfer out. They are able to transfer their present deal, however provided that the lender is comfortable to safe the mortgage on their new residence.
Though no cash will change palms, there can be a stamp responsibility land tax (SDLT) invoice for you and them. They may pay the usual fee of SDLT on the worth of your home minus the SDLT nil-rate band of £125,000. You, however, can pay the upper fee of SDLT (which is the usual fee plus three) on your complete worth of their flat as a result of it isn't your important residence.
You might also face a capital good points tax (CGT) invoice if the acquire made on disposing of the property exceeds your annual CGT nil-rate band of £12,300 within the 2022-23 tax yr. The speed of CGT you'll pay can be 18% in case you are a basic-rate taxpayer and 28% when you pay tax on the greater fee.
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