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How Stamp Duty works on a transfer of equity
Stamp Duty Land Tax is charged on the chargeable consideration: the money paid for the share, plus the share of the mortgage the person taking it becomes liable for. Under the Finance Act 2003 (Schedule 4, paragraph 8) each owner is treated as owing the part of the mortgage that matches their share, so taking over a 50% share of a £200,000 mortgage counts as paying £100,000.
The usual rates then apply to that figure, slice by slice, as on a purchase:
| Up to £125,000 | 0% (5% at the higher rates) |
|---|---|
| £125,001 to £250,000 | 2% (7%) |
| £250,001 to £925,000 | 5% (10%) |
| £925,001 to £1.5 million | 10% (15%) |
| Above £1.5 million | 12% (17%) |
- Divorce, separation or dissolution. Exempt, with no return, when a married couple or civil partners split the property by agreement or under a court order. Our calculator shows £0 for the buy-out above in that case.
- Nothing paid, no mortgage taken on. No chargeable consideration, so no Stamp Duty and no return.
- The higher rates apply when the person taking the share will own another home worth £40,000 or more, except on a transfer to a spouse or civil partner with no one else involved, or when buying more of a home you already own 25% or more of and have lived in as your only or main home for the previous 3 years.
Sources, checked 20 October 2026: HMRC Stamp Duty Land Tax Manual SDLTM04040, debt as consideration (updated 1 September 2026); transactions that don’t need a return; buying an additional residential property (updated 1 April 2025); residential property rates (all GOV.UK). HMRC is the authority on what you owe.
Worked examples
Three common changes, worked out with the same rules as the calculator.
Buying out a co-owner’s half of a £400,000 home with a £200,000 mortgage
The equity is £200,000, so the buy-out sum is £100,000. Taking on the other half of the mortgage adds £100,000. Stamp Duty is charged on £200,000: £1,500. Standard rates.
Adding a partner as a half owner of a £350,000 home with a £250,000 mortgage, nothing paid
Your partner takes on half the mortgage, £125,000, and pays nothing else. That falls within the 0% band up to £125,000, so the Stamp Duty is £0. Standard rates: nothing is due on the first £125,000. A Stamp Duty return is usually still needed, as the consideration is £40,000 or more.
Buying out half of a £600,000 home with a £100,000 mortgage, while owning another home
Stamp Duty is charged on £300,000. At the higher rates that is £20,000. If you already own half and it has been your only or main home for the last 3 years, the standard rates apply instead: £5,000. At the higher rates for additional homes: 5% on top of every band, because the person taking the share will own another home.
What else you pay
- HM Land Registry fee. Paid to the government to register the change, on its published fee scales. We work it out in your quote.
- Our fee. We confirm it in a written quote before we start. Our fees page lists our published fees.
- Your lender. Some lenders charge to add or remove a name, and a buy-out is often paid for by a remortgage.
Capital Gains Tax can apply to the person giving up a share of a home that was not their only or main home for the whole time they owned it. The calculator does not work it out: ask an accountant.
Questions people ask
Do you pay Stamp Duty on a transfer of equity?
Usually only if the chargeable consideration is over £125,000, or £40,000 or more at the higher rates (then 5% applies from the first pound). The consideration is the money paid for the share plus the share of the mortgage the person taking it becomes liable for. HMRC’s manual explains the mortgage rule.
How do I work out how much to pay to buy someone out of a house?
Start with the equity: what the home is worth now, less the mortgage. A half owner’s share of £200,000 of equity is £100,000. Owners often agree a different figure, for example where one paid more of the deposit. A valuation from an estate agent or surveyor gives you the starting figure.
Is a transfer of equity on divorce exempt from Stamp Duty?
Usually, yes. When a married couple or civil partners divorce, legally separate or end their civil partnership, a transfer that splits the property by agreement or under a court order is exempt, and no return is needed. This does not cover unmarried couples who split up. GOV.UK lists the exemption.
Do the higher rates apply if I already own another home?
They can. They do not apply to a transfer to your spouse or civil partner when no one else is involved, or when you are buying more of a home you already own 25% or more of and that has been your only or main home for the previous 3 years. GOV.UK explains the higher rates.
What if no money changes hands?
If no money is paid and the person taking the share does not take on any of the mortgage, there is no chargeable consideration: no Stamp Duty and no return. Taking on part of a mortgage counts as paying, even with no cash.
Does the lender need to agree?
Yes, if there is a mortgage. The lender has to agree to anyone joining or leaving the title, and usually to who will be on the mortgage. A buy-out is often paid for by a remortgage, which we can handle at the same time.
What else does a transfer of equity cost?
An HM Land Registry fee to register the change, paid separately to the government on its published fee scales, and our legal fee, which we confirm in a written quote. Our transfer of equity page explains the steps.
Related pages
Adding or removing someone on your title deeds?
An estimate for individuals transferring a share of a home in England. This is not tax advice: HMRC is the authority on what you owe. General information on the rules as of 20 October 2026, not advice on your transfer.