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Where Taxpayers and Advisers Meet

Scotland SDLT with partial inheritance

Bearymcbearface
Posts:2
Joined:Fri Aug 05, 2022 7:21 pm
Scotland SDLT with partial inheritance

Postby Bearymcbearface » Fri Aug 05, 2022 7:57 pm

I live in England and have done for 20 years although I am originally from Scotland where my mother still lives. My father died 5 years ago and left me his 50% share is in the house which he shared with my mother and where she continues to live . I'm up and down regularly she struggles with her health and I'm considering moving back to Scotland to support her, but I need to understand how the 50% inheritance of a secondary house will impact SDLT My current house in England is worth about 350k and my mother's flat in Scotland is worth about 140k.

if I sell my house in England I'd temporarily move in with my mother while househunting and I need to know whether I'll be seen as a second home owner and therefore have to pay this enhanced tax in Scotland

There's a possibility she'll move into sheltered housing, but in that case we'd still keep the house as I would need somewhere to stay while coming up to support her. I'd take over her flats bills/ council tax completely and again use it as a base while giving support although potentially selling both houses giving the 50% to my mother . I'd then buy another in Scotland and here assume no enhanced land tax as I would have paid CGT on the house profit.

Is either scenario better for me from a tax perspective.?

Also, Although unlikely I'd like to understand if I would be liable for enhanced SDLT if move within England with mother continuing to live in her home , or me using it to allow me to support her.

I have heard that owning 50% means you don't pay the enhanced tax, but find the Scotland England scenario more confusing.

Can anyone help please.

bd6759
Posts:3773
Joined:Sat Feb 01, 2014 3:26 pm

Re: Scotland SDLT with partial inheritance

Postby bd6759 » Mon Aug 08, 2022 1:00 pm

You do not pay enhanced SDLT or LBTT if you are replacing your residence, no matter how many properties you own.

Bearymcbearface
Posts:2
Joined:Fri Aug 05, 2022 7:21 pm

Re: Scotland SDLT with partial inheritance

Postby Bearymcbearface » Wed Aug 10, 2022 5:51 pm

Ooh that's great news. Thank you


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