Major Interest

David_Dawson

Hi,

Just wondering if anyone can help answer the following.

We are looking at buying our first home and I am currently down as a beneficiary on my mums house who past away 5 years ago. We are due to sell the house of which I am entitled to an equal share of around 70k once sold. This will be split with my four siblings so I will have around 12k for a deposit.

We are looking to take advantage of the help to buy and the question I have is am I eligible for stamp duty relief. From what I can find on the internet it states that anyone with a major interest in a dwelling is not eligible for the relief but I don’t know what is classed as major interest.

Any help is greatly appreciated.

Thanks

KatrinaWaves

I believe it has to be over 40k, so a 12/15k inheritance won’t trigger that. I think there may even be general inheritance rulings but on a stake that small I don’t believe they would be necessary...

Tom99

The £40k min is for the 3% higher rate stamp duty not FTB relief.
What matters is whether you actually have a beneficial ownership of the house now. If you do you are not a FTB.
Just being an expected beneficiary when the house is sold would not automatically make you a beneficial owner now.
Since there can only be a maximum of 4 legal owners you need to know how the house is owned.

da_rule

As Tom99 says, the £40k is the amount under which you do not have to pay any SDLT or file a return (regardless of whether higher rate or standard rate SDLT applies).

Section 117 of the Finance Act 2003 sets out that a major interest in land is simply a legal or equitable interest in any freehold estate or long leasehold estate. There is no mention of value.

The first time buyer relief guidance note (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/759714/Stamp_Duty_Land_Tax_relief_for_first_time_buyers_-_guidance_note.pdf) sets out that the relief would still be available if your interest had been in anything other than a dwelling (commercial building, land etc).

You do need to clarify who actually owns the house being sold though. Is it still registered to your mum in which case you could be entitled to relief (unless you are also a trustee of your mums estate). If you (and your siblings) are named on the title as proprietors then you have a major interest.