HMRC SDLT: SDLTM18000 – Chargeable Consideration: Contents

In the UK, Stamp Duty Land Tax (SDLT) is generally payable when you buy or transfer property or land.
However, whether SDLT applies depends on the chargeable consideration. If there is no chargeable
consideration involved in a transfer (for example, when gifting a property without taking on any mortgage debt),
then no SDLT is payable.

What is Chargeable Consideration?

Chargeable consideration refers to the total value given by a buyer (or transferee) to acquire an interest
in property or land. This includes:

• Any money paid for the property
• Any non-monetary forms of payment (e.g., goods or assets)
• Any outstanding mortgage or debt you agree to take on

When is SDLT Not Payable?

If there is no money, no mortgage, or no transfer of debt involved,
there is no chargeable consideration, and therefore no SDLT is due. For instance:

• If a property is gifted outright to someone without any mortgage responsibility.
• If one partner gifts equity in a property to the other partner without the other taking on
  any share of a mortgage.

In such cases, the transfer might still need to be reported, but no tax is usually payable
provided no chargeable consideration exists.

When is SDLT Payable?

SDLT is payable when there is chargeable consideration, for example:

• Purchasing property: Paying money for a house or land is straightforward chargeable consideration.
• Transferring property with an existing mortgage: If you take on some or all of someone’s
  mortgage, the amount of mortgage debt you assume is considered chargeable consideration.
• Exchanging assets: If you swap one property for another of different value, the difference
  may be treated as chargeable consideration.

Detailed Guidance from HMRC

According to HMRC SDLT: SDLTM18000 – Chargeable Consideration, the principles
of chargeable consideration include:

• The amount of money or non-monetary payment for the property
• The value of any outstanding mortgage being assumed
• Any additional obligations or benefits that form part of the transaction

Key Points from HMRC Guidance

• Monetary Payments: Straightforward inclusion of any cash paid for the property.
• Non-Monetary Consideration: Items such as a car or other valuables given in lieu of cash.
• Liabilities: Taking on a seller’s mortgage or other debt can count as consideration.
• Exemptions & Reliefs: Certain transfers (for instance, some intrafamily transfers) may
  not incur SDLT if no chargeable consideration is given.
• Reporting: If a transaction is notifiable, it must be reported to HMRC even if no SDLT is due.

The key message from HMRC’s guidance is that SDLT is calculated based on chargeable
consideration. If no chargeable consideration arises in a transfer—for example, when a property
is gifted without any mortgage involvement—then no SDLT is due.

How to Report Chargeable Consideration

When completing an SDLT return, you must include the total chargeable consideration for the transaction.
Ensure you:

• Submit your return within 14 days of completing the transaction.
• Pay any SDLT that is due within that timeframe to avoid penalties.
• Include any exempt amounts or reliefs in the return, if applicable.

If in doubt, seek professional advice to ensure your SDLT calculations are correct, especially for
more complex transactions or arrangements.

Conclusion

Chargeable consideration is central to determining whether Stamp Duty Land Tax is payable
on a property transaction. No chargeable consideration means no SDLT,
whereas assuming a mortgage or paying a sum triggers SDLT based on the value or amount of debt taken on.
Always stay updated with current thresholds—currently £250,000 (until 1 April 2025)—and ensure you consult
HMRC guidance or a professional if you are unsure about your situation.

Useful article? You may find it helpful to read the original guidance here: HMRC SDLT: SDLTM18000 – Chargeable Consideration: Contents

View all HMRC SDLT Guidance Pages Here