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Where Taxpayers and Advisers Meet

SDLT on buying my brother's share of an inherited property

Caligill
Posts:1
Joined:Thu Feb 13, 2020 11:00 pm
SDLT on buying my brother's share of an inherited property

Postby Caligill » Thu Feb 13, 2020 11:15 pm

My brother and I are joint residual. beneficiaries of my late aunt's will. Probate is being applied for. When all taxes and other bequests are accounted for (including an extra 10k in cash to my husband and I), it is estimated that the residual estate will consist of my aunt's house (valued at 300k) and slightly less in cash. I wish to take over the house, but a balancing payment of around 30k to my brother will be required. I understand any SDLT will come with the second home surcharge. There are no specific instructions in the Will as to the house.

My questions are:

1. Do I have to pay SDLT on the whole value of the house? or
2. Do I have to pay SDLT on the 30k balancing payment? or
3. Can I pay down some of the inheritance tax (estimated at over 100k) and my brother make over the house to me by a Deed of Variation, thereby avoiding SDLT? Inheritance tax is payable before April and it seems possible that the estate will not be wound up before then due to various other issues.

Im happy to pay the tax if necessary and don't want to do anything unethical but I am getting conflicting opinions from the internet and (so far) the professionals. Some clarity would be very much appreciated.

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: SDLT on buying my brother's share of an inherited property

Postby jerome.lane » Thu Apr 30, 2020 11:16 pm

There is usually no SDLT on a deed of variation unless there is chargeable consideration which should be £30k as you suggested. Paying down the IHT could potentially be construed as consideration and the SDLT on £30k is only £900.
Jerome Lane
Tax Adviser
Telephone: 07943 005902


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