Can I open a help to buy ISA / am I a first time buyer?

Crispyduck

I am thinking about applying for a help to buy ISA, savings account soon and was wondering if anyone can answer definitively if I can do this.

The reason for my doubt is an inheritance from which I was a minor beneficiary (1% share) of an estate that included a house which was sold within the year.

As far as I can tell the property would never have come under my name and I simply received a few thousand pounds as a lump sum. However would I am concerned this would disqualify me as technically having an interest in a property. On the HMRC guidance conditions for being a first time buyer states:

In order to count as a first time buyer, a purchaser must not, either alone or with others,
have previously acquired a major interest in a dwelling or an equivalent interest in land
situated anywhere in the world.
This includes previous acquisitions by inheritance or gift, or by a financial institution on
behalf of a person under an alternative finance scheme.
Relief is not denied by virtue of a previous acquisition as a trust

This is guidance for stamp duty relief, however this doesn't explain what a major share would be.

With regards to the help to buy ISA savings account the rules appear to state that ANY interest in a property is automatically disqualifying.

This would be irritating as the mount of money i received would be less than the bonus offered by the account if buying a property.

Any advice would be appreciated.

Steve_xx

Crispyduck wrote: »

I am thinking about applying for a help to buy ISA, savings account soon and was wondering if anyone can answer definitively if I can do this.

The reason for my doubt is an inheritance from which I was a minor beneficiary (1% share) of an estate that included a house which was sold within the year.

As far as I can tell the property would never have come under my name and I simply received a few thousand pounds as a lump sum. However would I am concerned this would disqualify me as technically having an interest in a property. On the HMRC guidance conditions for being a first time buyer states:

In order to count as a first time buyer, a purchaser must not, either alone or with others,
have previously acquired a major interest in a dwelling or an equivalent interest in land
situated anywhere in the world.
This includes previous acquisitions by inheritance or gift, or by a financial institution on
behalf of a person under an alternative finance scheme.
Relief is not denied by virtue of a previous acquisition as a trust

This is guidance for stamp duty relief, however this doesn't explain what a major share would be.

With regards to the help to buy ISA savings account the rules appear to state that ANY interest in a property is automatically disqualifying.

This would be irritating as the mount of money i received would be less than the bonus offered by the account if buying a property.

Any advice would be appreciated.

This is the pertinent sentence in your case:

"This includes previous acquisitions by inheritance"

Therefore, I'd say you were disqualified on that basis. However, I'm unsure as to how, if ever, this would come to light. Nor am I sure what, if any, conseqence would ensue in the event that you were discovered!

AirlieBird

The definition of a FTB for stamp duty relief may or may not be the same as that for the HTB ISA.

The definition of a FTB for the HTB ISA is someone who

• is not, and never has been, a Residential Property Owner;

To be a Residential Property Owner your ownership of the land either

• was acquired by the individual as a purchaser;
• or entitles the individual to possession or occupation of that land.

You can read the full definition in the scheme rules
https://www.helptobuyisaadmin.org.uk/sites/default/files/scheme-rules.pdf

eskbanker

Crispyduck wrote: »

The reason for my doubt is an inheritance from which I was a minor beneficiary (1% share) of an estate that included a house which was sold within the year.

As far as I can tell the property would never have come under my name and I simply received a few thousand pounds as a lump sum.

My understanding (mirrored by threads on the ISA board) is that the main test used here is whether your name ever appeared on the title deeds of the property, and I imagine if you had a 1% share that it didn't, as this suggests that the property was sold and the proceeds divided across a large number of beneficiaries, as part of the estate distribution, rather than as a separate independent process at a later date.

Assuming you don't recall the detail, are you able to clarify with the executor of the estate exactly how the process worked at the time?

Crispyduck

My understanding (mirrored by threads on the ISA board) is that the main test used here is whether your name ever appeared on the title deeds of the property, and I imagine if you had a 1% share that it didn't, as this suggests that the property was sold and the proceeds divided across a large number of beneficiaries, as part of the estate distribution, rather than as a separate independent process at a later date.

Assuming you don't recall the detail, are you able to clarify with the executor of the estate exactly how the process worked at the time?

Thanks for the replies.

I am certain that my name was never on the title deeds to the property, as a beneficiary the only thing I received was the lump sum. The sale was conducted fairly quickly and the name on the deed was transferred directly to the new owner. If the test used to establish an interest in the property is the name appearing on the deed I should be fine.

Thanks AirlieBird for posting the scheme rules, I have read the eligibility section however am still somewhat unclear as to weather or not I would have been classed as possessing an interest in a property as the only thing I received was the money.