Additional 3% Stamp Duty

mkcj

Person dies intestate house split 5 ways to A,B,C,D.E.
Decided that until death A and B can live in the house.


Please could anyone advise if additional stamp duty would apply in the following scenarios if A / B are alive and still living in the house:-


C owns his own house and decides to move and buy another.


C dies, the 5th share is left to his daughter who lives in rented accommodation and subsequently decides to buy a house.


Would it make any difference if the house was put in a trust?


Thank you for any advise.

00ec25

Have you read the guide? If you did, you could answer the above yourself.
https://www.gov.uk/government/publications/stamp-duty-land-tax-higher-rates-for-purchases-of-additional-residential-properties

scenario 1: C is replacing his main residence so condition D (that there is no replacement) is not met. Depending on sale and purchase timing the higher rate may either not be paid or may have to be paid and then reclaimed

scenario 2: C's daughter is subject to the inheritance rules at page 16. The 3 year rule would apply to the date of her purchase.

for trusts take paid for legal advice, not amateur comments from a forum

mkcj

Thank you for your help.

p00hsticks

mkcj wrote: »

Would it make any difference if the house was put in a trust?

I was under the impression (maybe mistaken) that a maximum of four people could be named as owners on the land registry, and a trust was needed for more

Land_Registry

p00hsticks wrote: »

I was under the impression (maybe mistaken) that a maximum of four people could be named as owners on the land registry, and a trust was needed for more

Not quite - you can have as many people as you want named in the legal deed when purchasing/transferring the legal ownership. But only four would be named on the land register. Small but important difference.

A trust deals with the beneficial ownership normally e.g the % split in the value of the property. Trusts are very useful for setting such things out for everyone involved. And they can be protected on the register say by way of a restriction, form A, which indicates that there may be a trust involved. I say may as you can have a form A restriction for other reasons than a trust.