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Where Taxpayers and Advisers Meet

Stamp Duty Due on Deed of Trust for % beneficial interest in private residence

philseward
Posts:2
Joined:Tue Jun 09, 2020 4:36 pm
Stamp Duty Due on Deed of Trust for % beneficial interest in private residence

Postby philseward » Wed May 19, 2021 4:41 am

Trying to determine the right % of Stamp Duty on the following:

1. Person A is UK resident and has secured 100% ownership of subject property as Primary Residence as part of divorce settlement; Property has mortgage outstanding for approx 25% of total Value
2. Persons B&C are Person A's brother and his spouse; both live overseas and are not UK residents.
3. Persons B&C agree to pay Person A £67,000 in exchange for 25% beneficial interest in the subject property; recorded as a deed of trust executed on May 18th, 2021; Person A continues to live in the property as her primary residence with no additional rent due or payments made unless property is sold. Person A remains solely responsible for the existing mortgage.
4. Persons B&C need to pay SDLT on the transfer of beneficial interest in the property

Questions
As base SDLT is 0% due to the £ paid under the current threshold
Do Persons B&C have to pay 2% SDLT as a second home, since it is not their primary residence?
Do Persons B&C also have to pay the additional 3% as overseas residents?

So, is it 0%, 2% or 5% due in SDLT from Persons B&C in this scenario?

thanks for any help!

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Stamp Duty Due on Deed of Trust for % beneficial interest in private residence

Postby AGoodman » Wed May 19, 2021 10:20 pm

I haven't had to look at this too closely but it seems to be the 5%, being 3% for second home plus 2% for non-resident.

It is second home if either B or C own another property anywhere in the world.


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