This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

SDLT on inherited property buyout by single beneficiary

Krupa P
Posts:2
Joined:Sat Apr 22, 2017 1:14 pm
SDLT on inherited property buyout by single beneficiary

Postby Krupa P » Sat Apr 22, 2017 1:31 pm

Hi,

I'm seeking some help with a SDLT query I have. I am the executor of a will for my grandparents. They left their home to their 4 daughters in equal share and one of the daughters wants to buy out the other sisters with cash (she has lived with my grandparents in this house for 20+ years). I have grant of probate and now want to deal with change in ownership but am getting conflicting advice on SDLT liability from solicitors.

House market value has been agreed at £452,500 and there is no existing mortgage on the property.
So my aunt would pay £339,375 to her 3 sisters to buy out their share.
We are getting conflicting views on the SDLT. She already owns 2 investment homes so the questions are:

1) Is she liable for Stamp Duty on £339,375?
2) If yes, would this be calculated on the higher rate even though this is and will continue to be her main residence?
3) One solicitor has suggested if we use Transfer of Deeds then there is no Stamp Duty payable but I can't see anything on this. Is this correct?

I'd really appreciate some help with this.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: SDLT on inherited property buyout by single beneficiary

Postby bd6759 » Sat Apr 22, 2017 9:56 pm

1. Yes
2. Yes (she owns more than 1 property and is not disposing of an interest in a residence)
3. Did the solicitor explain what he meant?

AnthonyR
Posts:322
Joined:Wed Feb 08, 2017 2:33 pm

Re: SDLT on inherited property buyout by single beneficiary

Postby AnthonyR » Sun Apr 23, 2017 2:10 pm

Was there much in the way of other assets in the estate? Could one or all of the other sisters take a larger share of cash/residue in exchange for a larger share of the property going to the sister looking to buy?
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk

Krupa P
Posts:2
Joined:Sat Apr 22, 2017 1:14 pm

Re: SDLT on inherited property buyout by single beneficiary

Postby Krupa P » Mon Apr 24, 2017 7:59 am

Thanks for the replies.

I am still waiting for further explanation regarding the Transfer Deed comment.

Unfortunately there are no other material assets within the estate.

Thanks again


Return to “Stamp Duty, Stamp Duty Land Tax, SDLT”