Q:

Is stamp duty payable on a transfer of equity?

A:

Stamp duty land tax is generally payable on the amount of equity transferred if the transfer involved an exchange of items of economic value such as money, the buyout of a mortgage or an exchange of stocks for equity in a property.

The stamp duty land tax is most often charged on the consideration, or amount of the equity being transferred. There are some situations where equity can be transferred without incurring stamp duty land tax, such as transfers that are below the stamp duty tax threshold. If the transfer of equity is a gift, meaning no money or items of monetary value are exchanged, then stamp duty land tax is not applicable.

Sources:

  1. hmrc.gov.uk

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