Quick answer
Stamp duty on a transfer of equity is charged on the 'chargeable consideration': any money paid plus the share of the mortgage the new owner takes on.1 Take half of a £600,000 mortgage and that is £300,000, which costs £5,000 at 2026/27 rates.2 A gift with no mortgage is free of SDLT,1 and transfers on divorce or dissolution, or under a will, are exempt.3 A return is needed when the consideration is £40,000 or more.4
Key takeaways
- SDLT is charged on what the new owner gives: cash plus their share of any mortgage taken on.1
- No SDLT on a gift with no outstanding mortgage.1
- Transfers on divorce, separation agreements or civil partnership dissolution are exempt, as are transfers under a will.3
- No SDLT return is needed if the consideration is £39,999 or less.4
- Transfers between spouses or civil partners living together are outside the 5% higher rates.5
A transfer of equity changes who owns a home without it being sold: adding a partner, removing an ex, or moving a share to a child. Because taking on a mortgage counts as paying for the share, stamp duty can be due even though nobody hands over a deposit.
This guide covers Stamp Duty Land Tax in England and Northern Ireland. Note that GOV.UK's worked examples on this topic were written for the 2022 to 2025 thresholds; the figures below use the rates from 1 April 2025.
Worked examples: stamp duty for a home mover
| Price | England/NI tax | Scotland tax | Wales tax |
|---|---|---|---|
| £300,000 | £5,000 | £4,600 | £4,500 |
| £500,000 | £15,000 | £23,350 | £18,000 |
| £750,000 | £27,500 | £48,350 | £36,750 |
How is stamp duty worked out on a transfer of equity?
Anything of monetary value the new owner gives in exchange for the share is the chargeable consideration.1 That includes cash paid to the existing owner and the part of the mortgage the new owner becomes liable for. If you take on half of a joint mortgage, half of the outstanding balance counts.
SDLT is then charged on that amount at the normal residential rates: 0% to £125,000, 2% to £250,000, 5% to £925,000 and so on.2 Where the new owner already owns another home, the 5% higher rates can apply, unless the transfer is between spouses or civil partners who live together.5
Worked examples at 2026/27 rates
Each example assumes the new owner does not own another home, so the standard rates apply.
| Transfer | Chargeable consideration | SDLT |
|---|---|---|
| Half of a £400,000 home, £200,000 mortgage: partner takes on half | £100,000 | £0 (return needed) |
| Half of a £600,000 home, £400,000 mortgage: partner takes on half and pays £20,000 | £220,000 | £1,900 |
| Half of a £700,000 home, £600,000 mortgage: partner takes on half | £300,000 | £5,000 |
| Half of a mortgage-free home given to a partner | £0 | £0 (no return) |
The £700,000 case is GOV.UK's own scenario; its page shows £2,500 because it uses the old £250,000 nil-rate band.
In the £300,000 case, the tax is 2% on £125,001 to £250,000 (£2,500) plus 5% on £250,001 to £300,000 (£2,500). Note that it is the mortgage share, not the property value, that counts: the house price only matters if cash is paid for the equity.
When is no stamp duty due?
A transfer is exempt if there is no chargeable consideration, so a gift of a share in a home with no mortgage is free of SDLT.13 Transfers between the parties to a divorce or dissolution, made under a court order or an agreement in contemplation of it, are exempt.3 So is property passing under a will, provided the person receiving it gives nothing for it.3
You do not need to send a return if no money or other payment was made, if the property was left to you in a will, if it transferred because of divorce or dissolution, or if the consideration was £39,999 or less.4 Otherwise the return is due within 14 days, even if no tax is owed.4
How does a transfer of equity work in practice?
If there is a mortgage, the lender has to agree first, because the new owner becomes responsible for the loan. A conveyancer then prepares the transfer deed, works out the chargeable consideration, files the SDLT return within 14 days if one is needed,4 and registers the change at HM Land Registry.
Before you start, write down the numbers that drive the tax: the outstanding mortgage balance on the transfer date, the share of it the new owner takes on, and any cash changing hands. Those three figures, not the property's value, decide whether stamp duty is due.
What about the 5% higher rates?
The higher rates rules ignore transfers solely between spouses or civil partners who are living together.5 That exception does not help unmarried partners: if your partner owns another home and takes on more than £40,000 of consideration for a share in yours, ask your conveyancer whether the 5% surcharge applies. It also stops applying if a married couple have separated by court order or deed, or the separation is likely to be permanent, or if a third person holds an interest.5
Use the calculator for this topic
Frequently asked questions
Do you pay stamp duty when adding someone to a mortgage?+
Only if the share of the mortgage they take on, plus any cash they pay, is above the nil-rate band. Taking on £100,000 of mortgage costs nothing; taking on £300,000 costs £5,000 at 2026/27 rates.
Is there stamp duty on a gifted share of a house?+
Not if there is no outstanding mortgage and nothing is paid. If the person receiving the share takes on part of a mortgage, that amount is taxable.
Is a transfer of equity on divorce taxable?+
No. Transfers between the parties under a court order or an agreement made in connection with divorce or dissolution are exempt, and no return is needed.
Do I need to file an SDLT return for a transfer of equity?+
Yes if the consideration is £40,000 or more, within 14 days, even when no tax is due. No return is needed for gifts with no payment, transfers under a will or on divorce, or consideration of £39,999 or less.
Does the 5% surcharge apply to a transfer between spouses?+
No, if the spouses or civil partners live together and the transfer is solely between them. It can apply between unmarried partners where the person acquiring the share owns another home.
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OfficialThe figures and rules on this page are drawn from the official UK government sources below. Rates are the confirmed 2026/27 amounts. Each link opens the relevant official page in a new tab.
- GOV.UK: Transferring ownership of land or property (SDLT) www.gov.uk/sdlt-transferring-ownership-of-land-or-property Chargeable consideration includes a share of a mortgage taken on; examples use pre-April 2025 bands.
- GOV.UK: Stamp Duty Land Tax residential property rates www.gov.uk/stamp-duty-land-tax/residential-property-rates 0% to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5m, 12% above, from 1 April 2025; first-time buyer relief to £500,000.
- legislation.gov.uk: Finance Act 2003, Schedule 3 www.legislation.gov.uk/ukpga/2003/14/schedule/3 Exemptions: no chargeable consideration, divorce and dissolution, assents under a will.
- GOV.UK: Check if you need to send an SDLT return www.gov.uk/guidance/check-if-you-need-to-send-a-stamp-duty-land-tax-return No return for gifts, wills, divorce or consideration of £39,999 or less; otherwise within 14 days.
- HMRC SDLT Manual SDLTM09820: transfers between spouses www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09820 Higher rates disregard transfers solely between spouses or civil partners living together.
Verified against published UK government guidance. See also Methodology and Editorial standards.