Stamp Duty payable when buying out shares of an inheritance

[IanW]

My wife has inherited a one third share in her parents home. Probate has been granted. We intend to buy out the remaining two thirds from the other parties. The market value of the house is £200K so we would expect, all things being equal(!), to have to pay £1333 stamp duty land tax. As an added complication we have discovered that the house is in a disadvantaged area. The solictor handling the transfer is uncertain what level of SDLT is actually payable: £2,000, £1,333 or nothing, and points out that it is the "Purchasers responsibility". Any advice would be welcome.

[Ian McTernan CTA]

Value of transfer is £133,000 and so stamp duty payable will be NIL due to disadvantaged area relief. I suggest you instruct a solicitor who knows about such things and will complete the SDLT form for you as well. I am not a stamp duty expert but most solicitors handling convenyancing will be able to tell you straight away.

The alternative is to set aside £2,000 and submit the forms to be stamped and then wait nine months for the enquiry window to close and then you will know that no duty is payable.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com