SDLT on inherited property

[jwbryan]

I live in a flat (I am the sole owner) with my two grown-up children and this has been their home since childhood. The flat is valued at £450k (it has a short lease). The kids own a property jointly that was inherited from their mother and my daughter owns another property which will be her 'pension'. Both properties are let and the children have never lived in either of them. I plan to leave my flat to them jointly. Will they have to pay SDLT when they inherit and or the premium because they own other properties? Grateful for any advice.

[maths]

No SDLT on inherited property.

[SDLT Geek]

You mention a premium. I expect you mean the premium for extending the lease of the flat.

If you extend the lease and own no other properties, then I would expect SDLT to be due at the "normal" rates to the extent that the premium exceeds £125,000.

If your children inherit the flat and extend the lease then, because they own other properties, it seems likely that the higher rates of SDLT will apply if the premium is £40,000 or more.

Generally speaking it is better to extend a lease sooner rather than later. Knowing the above, you have an extra incentive to get it done!

[jwbryan]

Many thanks to both of you for the replies. In fact I hadn't meant the 'premium' to extend the lease but this is useful information. What I meant (and apologies for using the wrong word) was the extra amount of SDLT which has to be paid if you already own a property. If no SDLT is payable on inherited property does this mean that extra doesn't have to be paid either? Again, very grateful to you both for the advice.

JWB

[maths]

The 3% supplement not chargeable either.

[jwbryan]

Once again, many thanks.