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Where Taxpayers and Advisers Meet

SDLT following sale of an inherited property

Posts: 24
Joined: Wed Aug 06, 2008 3:30 pm

SDLT following sale of an inherited property

Postby carolinehs » Mon Jul 08, 2019 2:44 pm

My two brothers and I owned a house together. One of my brothers recently passed away and left the property to my other brother and me. I do not want to keep the property and my surviving brother does, so he has offered to buy me out. We will be paying IHT on my deceased brother's portion of the property. Does SDLT have to be paid on half the value of the house, or is there some recognition of the fact that we have been left 1/3 of the property following our brother's death?

Thank you

Posts: 383
Joined: Mon Feb 13, 2017 10:09 am

Re: SDLT following sale of an inherited property

Postby someone » Mon Jul 08, 2019 7:40 pm

SDLT is paid on consideration - so SDLT will be due on whatever your brother pays for your share.

You don't indicate whether the property is the majority of the estate or whether it's a small part.

It may be possible, for example, for you to inherit cash assets and your brother the property. Possibly via a deed of variation.

I'm unsure whether there's any planning possible re taking out a mortgage to pay the IHT that might allow your brother to inherit the house plus mortgage (and then pay it off) rather than use other assets to pay the bill.

There are other schemes that people might try 'I'll give you the house for nothing and you give me 600k' sort of thing but they're illegal.

It might be worth taking professional advice but I don't know that there's any guaranteed ways to avoid the SDLT in this sort of scenario.

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