Estimate the SDLT, CGT and total cost of transferring a share of property equity. Works for adding or removing a spouse, partner, child or other person from the title.
Transfer of Equity Tax Calculator
Enter your property details to estimate the Stamp Duty Land Tax (SDLT) and Capital Gains Tax (CGT) implications of your equity transfer. Results are estimates — consult a solicitor and tax adviser before proceeding.
SDLT (Stamp Duty Land Tax)
Value of share transferred—
Mortgage assumed by new owner—
Total chargeable consideration—
SDLT payable—
Capital Gains Tax (Transferor)
Gain on transferred share—
CGT payable—
Total Transfer Cost
SDLT + CGT total—
Estimates only. SDLT and CGT calculations depend on full personal circumstances, other property ownership, reliefs and exemptions. Always use a conveyancing solicitor and tax adviser for a transfer of equity.
What Is a Transfer of Equity?
A transfer of equity is when ownership of a property changes without the property being sold outright. This typically involves adding a new owner to the title deed or removing an existing owner. Common scenarios include adding a spouse or civil partner, removing a former partner following separation, gifting a share to a child, or adjusting ownership stakes between joint owners.
From a legal perspective, a solicitor must handle the transfer and register the change at HM Land Registry. From a tax perspective, the transaction may give rise to SDLT (on the incoming owner), CGT (for the outgoing or transferring owner), and potentially IHT implications if the transfer is a gift.
SDLT on a Transfer of Equity
SDLT applies to a transfer of equity when there is "chargeable consideration". This is not just cash paid — it includes the value of any mortgage debt assumed by the new owner. If a mortgage of £300,000 exists and a 50% share is transferred, the new owner assumes £150,000 of mortgage debt, which counts as £150,000 consideration for SDLT purposes.
Consideration (Residential)
Standard SDLT Rate
Additional Dwelling Rate (+3%)
Up to £250,000
0%
3%
£250,001 – £925,000
5%
8%
£925,001 – £1,500,000
10%
13%
Over £1,500,000
12%
15%
Spouse exemption note: Transfers between married couples and civil partners who are living together are often structured so that only the mortgage assumption triggers SDLT. In many cases this keeps the SDLT charge to zero or minimal — but it is not an automatic exemption from SDLT where there is genuine consideration.
CGT on a Transfer of Equity
For CGT purposes, you are treated as disposing of the share you transfer at market value (or the actual consideration if higher). This creates a chargeable gain equal to the market value of the transferred share minus your original cost for that share.
Spouse / civil partner transfers: Transfers between spouses and civil partners living together are treated on a no gain/no loss basis. No CGT arises at the time of transfer. The receiving spouse takes over the transferring spouse's base cost.
Main home transfers (PPR): If the property has been your main residence throughout your ownership, Private Residence Relief should shelter the entire gain and no CGT is payable.
Investment property transfers: If the property has been let and is not your main home, CGT applies to the gain. The CGT annual exempt amount is £3,000 in 2025/26. CGT rates on residential property are 18% (basic rate) and 24% (higher rate).
Other Legal and Tax Considerations
Lender consent: Always required where there is an outstanding mortgage.
SDLT return deadline: 14 days from completion, even if no SDLT is due.
CGT reporting deadline: 60 days from completion for UK residential property.
IHT implications: Gifts of equity may be PETs (potentially exempt transfers) subject to the 7-year rule.
Gifts with reservation: If you transfer equity but continue living in the property, HMRC may treat the gift as ineffective for IHT.
Frequently Asked Questions
A transfer of equity is a legal process where someone is added to or removed from a property title deed. It is not the same as selling the property — the existing owner usually retains at least a share. Common examples include adding a spouse or partner to the title, or removing one owner after a relationship breakdown.
SDLT applies when there is a chargeable consideration on the transfer. If a mortgage is involved, the new owner assuming their share of the mortgage debt counts as consideration. Cash payments also count. If the total consideration is below £250,000 (residential), standard SDLT thresholds apply.
No. Transfers between spouses and civil partners who are living together are treated as being at no gain/no loss for CGT purposes. The receiving spouse takes over the transferring spouse's original base cost. CGT applies only if they are separated or divorced, or if the property is sold to a third party later.
Yes, but there are tax implications. Adding a child counts as a disposal for CGT purposes — any gain on the transferred share is taxable. If the property is your main residence and qualifies for Private Residence Relief (PRR), CGT may be nil. SDLT applies if the child assumes any mortgage debt.
Yes, if there is an outstanding mortgage. You must obtain lender consent before transferring equity. The lender will assess the creditworthiness of the person being added. Failure to notify the lender can breach mortgage conditions.
Chargeable consideration for SDLT purposes includes any cash payment made and the value of any mortgage debt assumed by the incoming owner. If a mortgage of £200,000 exists and a 50% share is transferred, the consideration is £100,000 (50% of the mortgage assumed) plus any cash payment.
Yes. A remortgage changes the loan terms or lender but keeps the same legal owners. A transfer of equity changes the legal ownership of the property (the title deeds). The two can happen simultaneously.
A straightforward transfer of equity with no mortgage usually takes 4 to 6 weeks. Where a remortgage is involved, 8 to 12 weeks is typical. Delays can occur if the lender's approval process is slow or if there are title queries at HM Land Registry.
If the incoming owner already owns a residential property, the 3% SDLT surcharge for additional dwellings may apply to the consideration on the transfer. Advice from a property solicitor or tax adviser is essential where the additional dwelling charge may be triggered.
In 2025/26, SDLT is charged at: 0% on up to £250,000 (standard); 5% on £250,001 to £925,000; 10% on £925,001 to £1.5m; 12% above £1.5m. The additional dwelling surcharge adds 3% on top.
SDLT must be reported to HMRC within 14 days of completion using an SDLT return, even if no tax is due. CGT on any gain must be reported within 60 days of completion using a Capital Gains Tax UK Land and Property report on HMRC's online service.
Transferring equity may help reduce your estate for IHT, but gifts are subject to the 7-year potentially exempt transfer (PET) rule. If you die within 7 years of making the gift, IHT may still be payable. Gifts with reservation rules may also apply if you continue to benefit from the property.