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Where Taxpayers and Advisers Meet

SDLT - Adding person to title

Paulcox74
Posts:12
Joined:Mon Feb 13, 2017 10:59 pm
Re: SDLT - Adding person to title

Postby Paulcox74 » Thu Mar 15, 2018 7:31 pm

Thanks again.

Assume the first declaration of trust is lodged with Land Registry to change the title? Does the second deed of amendment changing the beneficial interest need to be submitted to HMRC?

Paulcox74
Posts:12
Joined:Mon Feb 13, 2017 10:59 pm

Re: SDLT - Adding person to title

Postby Paulcox74 » Tue Mar 20, 2018 11:30 pm

So in summary...

1. Person A owns a flat and adds Person B to the title. There is no mortgage in place and no money is changing hands, therefore no SDLT is due.
2. There is no transfer of the beneficial interest when Person B is added to the title. Therefore, this does not create any SDLT or IHT liability.
3. Deed is amended at a later date to give Person B 100% beneficial interest, thus creating a gift with reservation of benefit. Person A moves out and it becomes a PET for 7 years. However, still no IHT liability as estate is under £325K.

So last question, is there a length of time between steps 2 and 3 that would be unacceptable to HMRC? In likelihood this would probably be a few years, however, what if it was just a couple of months? Would the Revenue have an issue with it (i.e. would they deem SDLT is actually due)?


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