Is SDLT payable on a gift with a mortgage by an individual?

[vat question]

Is SDLT payable upon a transfer of property by way of gift from a father to his children or from a will? Does it make any difference if the property has an existing mortgage?

[vatconsultant]

If you’re left land or property in a will
If you get land or property under the terms of a will, there’s no need to tell HMRC and you won’t pay SDLT. This applies even if you take on an outstanding mortgage on the property on the date the person died. This is on condition that no other consideration is given.

You’re given property as a gift
If you get property as a gift you won’t pay SDLT as long as there’s no outstanding mortgage on it. But if you take over some or all of an existing mortgage, you’ll pay SDLT if the value of the mortgage is over the SDLT threshold.

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