Stamp duty and Trust

hayes90

Good Afternoon

im currently looking at selling my main abode and moving into a new house.

i current own 2 houses on that is in a trust that my trusties on and im apart of it and one that i own out right.

I've been informed that i could end up paying 10k stamp duty because it would be class as a second home? is this right

Pixie5740

hayes90 wrote: »

Good Afternoon

im currently looking at selling my main abode and moving into a new house.

i current own 2 houses on that is in a trust that my trusties on and im apart of it and one that i own out right.

I've been informed that i could end up paying 10k stamp duty because it would be class as a second home? is this right

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09730

hayes90

Didn't really answer my question

Pixie5740

hayes90 wrote: »

Didn't really answer my question

It does if you read it.

Tom99

Do you own your main residence, the one you are going to sell? If so the higher rate SD does not apply.
It may be more complicated if the trust owns your main residence. See:
https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09815

"Bare Trusts
Where an individual has absolute beneficial ownership of an interest in land but legal ownership is held by another person (as in a bare trust or nominee arrangement) the individual with beneficial ownership is treated for the purposes of Condition C to own that interest [Para 3 Sch 16 FA 2003 and para 11(2) and (3) Sch 4ZA FA 2003]. This also applies where the beneficiary of the trust would be absolutely entitled but for being under age or disabled in a way that prevents them from being legally capable of owning property.

Trusts
Where a dwelling is owned by another person subject to a trust which gives the individual a right to occupy the dwelling for life or the right to the income earned in respect of the dwelling, the individual is treated as owning the interest [Para 11(1) and (3)]. This treatment will not apply to interests in dwellings which are trust property of a trust that gives the trustee a discretion to apply income between a class of beneficiaries or a trust which accumulates income."

hayes90

hi tom no i own the main house alll in my sole name .. im not good with legal jargon!

the other house what is in trust with my mum and dad as trustees. i am named on it but its my mum and dad first thats rented out

Tom99

hayes90 wrote: »

hi tom no i own the main house alll in my sole name .. im not good with legal jargon!
the other house what is in trust with my mum and dad as trustees. i am named on it but its my mum and dad first that's rented out

You need to beef up on the jargon, its your main residence you need to sell not 'the main house' but 'main abode' makes it clearer!:)

"Condition D is that the purchased dwelling is not a replacement of the purchaser’s only or main residence [Para 3(5)]."

hayes90

the main house i live in is the one im selling!