pqtaxation wrote:Maths’ answer to your question as you posed is of course correct.
But the SDLT of 3% on £262k consideration is ca. £8k and would not payable if you were to inherit all of the property.
It sounds as though the property in this case could be the family home and your co-beneficiary may be your sibling.
If your co-beneficiary, who would otherwise inherit the other 50% of the property, and you have total confidence in each other and he/she is willing to help you then it may be possible to mitigate that not inconsiderable “SDLT penalty” by for example executing a deed of variation so you inherit all of the property, you refinance it, you gift the £262k to the former co-beneficiary as a PET (and take out life insurance in trust to pay the incremental IHT payable of up to ca. £100k = 40% * £262k if you were to die within 7 years). The additional costs of the deed of variation and of your taking out 7 year term life insurance (assuming you are in good health) should be much less than ca £8k and the executor’s solicitor could complete the transfer to you once you have arranged the mortgage financing. That solicitor could advise you and your co-operative co-beneficiary on such an approach. Just an idea -- a co-operative sibling and I recently pursued a similar approach in similar circumstances.
Thanks you for the post.
