Stamp duty on gifted property
A property gift with no payment and no mortgage transferred attracts no SDLT. If the recipient takes over an existing mortgage, SDLT is charged on the value of the debt assumed, that counts as consideration even though no cash changed hands.
Last reviewed 16 May 2026.
The general rule: no consideration, no SDLT
SDLT is charged on the consideration given for a property. If you genuinely gift a property to a family member with no payment and no debt being taken on, there is no consideration and no SDLT. The transfer still needs to be registered at the Land Registry, but no SDLT1 return is required.
Where mortgages change everything
The biggest catch is the assumption of an existing mortgage. If you "gift" a property to your child and they take on a £180,000 mortgage as part of the deal, HMRC treats the £180,000 of debt as consideration. SDLT is calculated on £180,000.
Worked example: a parent gifts their £400,000 home to a child and discharges the mortgage before the transfer. SDLT: £0. Same parents gift the same property but the child takes on the £200,000 mortgage. SDLT on £200,000 = £1,500 standard, or £11,500 if the child already owns another home and the surcharge applies.
The surcharge can apply to gifts
Where SDLT is charged on debt assumed in a gift, the additional-property surcharge applies on the same basis as a normal purchase. If the recipient already owns a residential property and the assumed debt is over £40,000, the 5% surcharge applies to the debt assumed.
Gifts between spouses or civil partners
A transfer between spouses or civil partners during the marriage is generally outside SDLT where no consideration changes hands. Even if a mortgage is restructured between them, HMRC has specific rules that often eliminate SDLT for routine spousal transfers, but the detail matters and it is worth getting tailored advice for anything beyond a simple add-to-deeds.
Inheritance tax is a separate issue
A property gift may have inheritance tax implications. If the giver dies within seven years of the gift, the value of the gift may be brought back into their estate for IHT purposes (a "potentially exempt transfer"). The gift may also affect the main-residence nil-rate band. None of that is SDLT, but it is the more common reason gifts of property need professional advice.
Equity release and partial gifts
Adding a child or partner to the deeds part-way through a mortgage is treated as a gift of a share. If the added party is taking on a share of the mortgage, SDLT is charged on the proportion of the debt they assume. Adding someone to the deeds without changing mortgage arrangements is usually outside SDLT.