The legal transfer is completed when it is registered with HM Land Registry. The transfer deed itself does not determine the tax treatment. Any Capital Gains Tax (CGT), Stamp Duty Land Tax (SDLT) and Inheritance Tax (IHT). SDLT or IHT consequences depend on the nature and circumstances of the property transfer.
Whether you are selling, gifting, transferring a property to a limited company or transferring it between spouses, different rules can apply for Capital Gains Tax, Stamp Duty Land Tax and Inheritance Tax.
This guide explains what a transfer deed does, who prepares it and when the relevant tax point arises, using the 2026/27 tax rules for property in England.
Key Takeaways
What is a Transfer Deed?
A transfer deed is the legal document used to transfer property from one owner to another. Form TR1 is normally used when the whole of a registered title is transferred, while TP1 is used when only part is transferred, such as a garden, plot or piece of land.
The deed sets out the key details of the transfer, including the property, the current and new owners, and whether money is being paid or the property is being gifted. If there is more than one new owner, it can also record how the beneficial ownership will be shared.
Once the deed has been correctly signed, the transfer is usually submitted to HM Land Registry with form AP1. For registered land, the legal estate passes through registration, rather than simply when the deed is signed.
A transfer deed is not the same as a title deed. The transfer deed is used to transfer ownership, while the Land Registry title register records the current registered owner and important rights affecting the property. Older deeds may still be relevant where the register refers to them for covenants, easements or other rights.
Who Prepares a Transfer Deed, & When is it Signed?
This is mainly a legal step, but the tax consequences can be significant. Your conveyancer will often deal with the SDLT filing, while separate advice may be needed for CGT, IHT or wider tax planning. Timing matters, as some tax positions can already be fixed before the transfer deed is signed.
Does Signing a Transfer Deed Trigger a Tax Bill?
Not always. Signing a transfer deed does not automatically mean a tax bill is triggered that day.
That is because Capital Gains Tax , Stamp Duty Land Tax and Inheritance Tax can all use different dates to decide when a tax event happens.
So the real question is not simply, “When was the deed signed?” You also need to look at what kind of transfer took place, when it became legally effective, whether any money or mortgage was involved, and whether the person giving the property away still benefits from it.
Tax | Date that usually matters |
|---|---|
Capital Gains Tax | Usually, the date an unconditional contract is made. If there is a genuine condition precedent, it may be the date that condition is satisfied. |
Stamp Duty Land Tax | Usually completion, unless the contract is substantially performed earlier. |
Inheritance Tax | For an outright gift of land in England and Wales, usually when the formal transfer or conveyance is executed. The tax treatment then depends on who receives the property and the circumstances of the gift. |
Capital Gains Tax: Exchange Can Decide the Tax Year
For UK residential property that must be reported through the CGT on UK Property service, however, the 60-day deadline generally runs from completion. If the contract is genuinely conditional, the disposal date may instead be when the relevant condition is satisfied. For an outright gift of land, the disposal normally occurs when the gift becomes legally effective.
SDLT: Completion is Usually the Trigger
Signing a transfer deed does not automatically create an SDLT bill. A genuine gift with no chargeable consideration may not attract SDLT, but taking over mortgage debt can count as consideration and may create a liability.
Inheritance Tax: The Circumstances Matter
There is also a key risk where the donor gives the property away but continues to benefit from it. If they continue living there rent-free, the gift-with-reservation rules may apply and the property can still form part of their estate for IHT if that benefit continues until death.
The Key Takeaway
Signing the transfer deed is only one part of the tax picture. CGT may depend on the contract date, SDLT usually depends on completion, and IHT depends on how the property is transferred, who receives it and whether the donor keeps any benefit.
That means two transfers using the same Land Registry form can produce very different tax outcomes. If a transfer involves a gift, mortgage, trust or continued occupation, check the tax position before completion rather than dealing with an unexpected bill afterwards.
Worked Example of Transfer Deed: Selling a Buy-to-Let
A higher-rate taxpayer bought a rental flat for £240,000 in 2013. In 2026/27, they exchange contracts to sell it for £395,000.
Assume they also have £12,000 of allowable buying and selling costs, including SDLT, legal fees and estate agent’s commission, with no capital losses or reliefs available.
The calculation is:
£395,000 sale price
− £240,000 purchase price
− £12,000 allowable costs
= £143,000 capital gain
After deducting the £3,000 Annual Exempt Amount, the taxable gain is £140,000.
Because the seller’s income has already used up their basic-rate band, the whole taxable gain is charged at 24%.
£140,000 × 24% = £33,600 CGT
So, on these assumptions, the seller would face a Capital Gains Tax bill of £33,600.
Timing is important too. The disposal must generally be reported and the CGT paid within 60 days of completion. If the seller is required to file a Self-Assessment return, the disposal will normally need to be included there as well.
There may also be planning opportunities before exchange.
For example, transferring a genuine share of the property to a spouse or civil partner who is living with the seller can generally be done on a no gain/no loss basis. If they become a genuine beneficial owner before the unconditional sale contract is made, both individuals may potentially use their own £3,000 Annual Exempt Amount and any available basic-rate band.
However, this should not be treated as a last-minute paper exercise. Ownership, mortgage arrangements and possible SDLT consequences should all be checked before making the transfer.
The Key Point: Once an unconditional sale contract has been made, the CGT disposal date is normally already fixed.
Figures are illustrative and assume a 2026/27 disposal. The actual CGT position will depend on ownership, allowable costs, available losses, reliefs and the seller’s wider tax position.
Gifting Property via a Transfer Deed
Giving property away does not mean there is no tax. For CGT, a gift is normally treated as a disposal at market value, even if no money changes hands. So, for example, gifting a rental property to an adult child can create a CGT liability without giving the donor any cash to pay the tax.
For IHT, a non-exempt outright gift to another individual will generally be a Potentially Exempt Transfer (PET) and can become exempt if the donor survives seven years. However, if the donor continues to benefit from the property—for example, by living there rent-free—the gift-with-reservation rules may mean the property is still treated as part of their estate for IHT purposes.
Deed of Transfer: Transferring Property to a Limited Company
Transferring a property into your own limited company is a genuine tax transaction, not simply a change of name. Where you are connected with the company, SDLT is generally calculated by reference to the property's market value, even if little or no money changes hands. Residential purchases by companies will also generally fall within the higher SDLT rates, subject to the detailed rules and any available reliefs.
CGT is also normally based on market value. Incorporation Relief may defer some or all of the gain where a qualifying business is transferred to a company as a going concern, together with its business assets, in exchange wholly or partly for shares. For property landlords, whether the activity qualifies as a business is fact specific. Importantly, Incorporation Relief is a CGT relief—it does not itself remove SDLT, so both taxes should be reviewed before the transfer takes place.
Transfer Deed Worked Example: Transferring a Rental Property to Your Limited Company
Scenario: A landlord transfers a rental property worth £450,000 into a limited company they control. Because this is a connected-company transfer, SDLT is generally calculated using the property's market value. Assuming the normal company higher rates apply and no relief is available:
Calculation:
5% on the first £125,000 = £6,250
7% on the next £125,000 = £8,750
10% on the remaining £200,000 = £20,000
Total SDLT: £35,000.
At standard residential rates, £450,000 would produce £12,500 of SDLT, so the company higher rates add £22,500 in this example.
The separate 17% corporate SDLT rate is not relevant here because it applies to certain company purchases of dwellings costing more than £500,000. Even above that level, relief may be available where the property is acquired for a qualifying commercial property rental business.
Why incorporate at all? Individual residential landlords generally receive only a basic-rate tax reduction for qualifying finance costs, while companies are not subject to that particular restriction. But incorporation can bring significant upfront SDLT, CGT and refinancing costs, so the numbers should be modelled before the property is transferred.
Before moving a buy-to-let portfolio into a company, compare the upfront tax cost with the potential long-term benefit. UKPA's BTL company incorporation service can model the SDLT, CGT, Incorporation Relief position and estimated payback period using your portfolio figures.
Figures are illustrative. The actual SDLT and wider tax position will depend on the property, ownership structure and any available reliefs.
What Recent UK Tax Changes Mean for Property Investors
Recent tax changes are making landlord incorporation worth a fresh look, but they do not make it the right answer for everyone.
From 6 April 2027, separate property Income Tax rates of 22%, 42% and 47% will apply to individuals in England, Wales and Northern Ireland. Companies are not directly subject to these new property Income Tax rates, which may widen the tax gap between personal and company ownership.
Other changes also matter. The Furnished Holiday Lettings regime ended from April 2025, while the government plans to introduce a High Value Council Tax Surcharge from April 2028 for English homes worth £2 million or more.
But incorporation still comes with real upfront costs. SDLT, CGT, refinancing and professional fees can quickly outweigh the tax benefit.
The rules may change the calculation, but they do not change the principle: run the numbers before transferring the property.
Deed of Transfer: Transferring Property Between Spouses
Transfers between spouses or civil partners who are living together are generally no gain, no loss for CGT. There is usually no immediate CGT charge, but the receiving spouse takes over the existing CGT base cost, so the gain is deferred rather than erased.
If ownership is being changed before a sale, timing matters. For an unconditional sale, the CGT disposal date is normally the contract date, often exchange, so any genuine change in beneficial ownership needs to happen before then.
SDLT works differently. If the receiving spouse takes on part of an existing mortgage, that debt can count as chargeable consideration even if no cash changes hands. However, the higher SDLT rates generally do not apply to a transfer solely between spouses or civil partners who are living together, subject to the relevant conditions.
For rental property, the Income Tax split and Form 17 rules should also be checked where ownership is unequal.
Checklist Before You Sign a Transfer Deed
Before signing, make sure the tax, ownership and mortgage position are clear—not just the paperwork.
- Identify the transfer: is it a sale, gift, incorporation or transfer between spouses?
- Confirm the CGT date: if selling, check whether an unconditional contract has already been made and which tax year the gain falls into.
- Check the market value: where tax rules require market value, obtain a supportable valuation and keep the evidence.
- Work out the SDLT first: check the consideration, mortgage debt, higher rates, surcharges and any available reliefs before the effective date.
- Know the deadlines: where applicable, SDLT is generally due within 14 days of the effective date, while CGT on a reportable UK residential property disposal is generally due within 60 days of completion.
- Check gifts carefully: establish whether the transfer is exempt, a PET or immediately chargeable for IHT, and check whether the donor keeps any benefit.
- Record ownership properly: if there are joint owners, decide whether they will hold as joint tenants or tenants in common and record any beneficial shares correctly.
- Check the mortgage: where the property is charged, confirm any lender consent or other requirements before the transfer is completed.
Frequently Asked Questions
A TR1 form is used to transfer the whole of a registered property title in England and Wales. It records the property, the parties, consideration and ownership details, and is submitted to HM Land Registry to register the transfer. TP1 is normally used when only part of a title is transferred.
Not always. You can complete a property transfer without a solicitor, but professional help is often sensible where there is a mortgage, trust, tax issue or complex ownership arrangement. A lender may also require a solicitor or conveyancer to handle a mortgaged property transfer.
A transfer deed is the document used to transfer ownership, while the Land Registry title register records the current registered owner and key rights affecting the property. For registered land, the legal transfer is completed through registration with HM Land Registry.
It can. A property gift is normally treated as a disposal at market value for CGT, even if no money changes hands. However, reliefs may reduce the tax, and qualifying transfers between spouses or civil partners are generally made on a no gain, no loss basis.
Possibly. A genuine gift with no chargeable consideration will normally not attract SDLT, but taking responsibility for mortgage debt can count as consideration. Whether SDLT is payable then depends on the amount of consideration, the applicable rates and any available reliefs.
Where an SDLT return is required, it must generally be filed and any SDLT paid within 14 days of the effective date, which is usually completion but can sometimes be earlier. Late filing can trigger penalties, while late payment can attract interest.
Conclusion
If you are about to sign a transfer deed, the key issue is not the form itself but what the transaction means for your tax position. On a sale, exchange may already have fixed the CGT date. On a gift or transfer to a company, market value rules can create a substantial tax bill even when no cash changes hands.
That is why it pays to check the position before you sign. Ownership history, mortgage debt, income, available reliefs and timing can all affect the outcome. Know what is already fixed, what can still be changed and what the real tax cost could be.
WORK WITH UK PROPERTY ACCOUNTANTS
Transferring, gifting or moving a property into a company? UK Property Accountants can review the CGT, SDLT and IHT consequences before you sign, helping you identify reliefs, avoid unexpected tax bills and structure the transfer efficiently.
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