Stamp Duty - First time buyer with Two inherited properties

SDLT_Geek

First time buyers' relief does not apply at the moment, it is on hold until 31 March 2021 during the current "holiday", so forget that if you are going to complete a purchase by 31 March 2021.  It is explained here: https://www.blakemorgan.co.uk/stamp-duty-land-tax-holiday/

The issue is the 3% surcharge.  As shares of only 25% have been inherited within the last year, OP should be fine under the "not over 50% within the last three years" rule summarised here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09795

timjdaniel

getmore4less said:

timjdaniel said:

AnotherJoe said:

Did this person get the properties transferred to their names  or have they been left in the names of the previous owners ?

Properties have been through probate and are now officially in the 4 beneficiaries 

If they were being sold why was that done?

At the time the decision wasn't finalised (whether the properties would be sold or rented out) Neither have been privately rented out in the meantime though

timjdaniel

SDLT_Geek said:

First time buyers' relief does not apply at the moment, it is on hold until 31 March 2021 during the current "holiday", so forget that if you are going to complete a purchase by 31 March 2021.  It is explained here: 

The issue is the 3% surcharge.  As shares of only 25% have been inherited within the last year, OP should be fine under the "not over 50% within the last three years" rule summarised here:

Thank you. I have come across the hmrc page before and did think that may be saying the higher stamp duty tax might be avoided. The only thing I couldn't work out if that is suggesting the. same applies if it is two properties that have been inherited, do you think that makes a difference? Thanks

AdrianC

No, the route by which you came to own the properties is irrelevant.

You currently own two properties. You are not an FTB by almost any measure. You would be buying an additional property for SDLT.

timjdaniel

AdrianC said:

No, the route by which you came to own the properties is irrelevant.

You currently own two properties. You are not an FTB by almost any measure. You would be buying an additional property for SDLT.

The second line SDLT_Geek posted suggests that the route is relevant though.

AdrianC

timjdaniel said:

AdrianC said:

No, the route by which you came to own the properties is irrelevant.

You currently own two properties. You are not an FTB by almost any measure. You would be buying an additional property for SDLT.

The second line SDLT_Geek posted suggests that the route is relevant though.

I bow to my geeky colleague's superior geekiness.

ciderboy2009

I would suggest that you make sure that you use a good solicitor for your purchase who understands the nuances of SDLT - not one of the cheap conveyancing firms who probably won't have come across this situation before.

SDLT_Geek

timjdaniel said:

SDLT_Geek said:

First time buyers' relief does not apply at the moment, it is on hold until 31 March 2021 during the current "holiday", so forget that if you are going to complete a purchase by 31 March 2021.  It is explained here: 

The issue is the 3% surcharge.  As shares of only 25% have been inherited within the last year, OP should be fine under the "not over 50% within the last three years" rule summarised here:

Thank you. I have come across the hmrc page before and did think that may be saying the higher stamp duty tax might be avoided. The only thing I couldn't work out if that is suggesting the. same applies if it is two properties that have been inherited, do you think that makes a difference? Thanks

So long as both properties fall within the exception then you are fine: that you acquired the interest in the property within the last three years and the share you have does not exceed 50%.

timjdaniel

SDLT_Geek said:

timjdaniel said:

SDLT_Geek said:

First time buyers' relief does not apply at the moment, it is on hold until 31 March 2021 during the current "holiday", so forget that if you are going to complete a purchase by 31 March 2021.  It is explained here: 

The issue is the 3% surcharge.  As shares of only 25% have been inherited within the last year, OP should be fine under the "not over 50% within the last three years" rule summarised here:

Thank you. I have come across the hmrc page before and did think that may be saying the higher stamp duty tax might be avoided. The only thing I couldn't work out if that is suggesting the. same applies if it is two properties that have been inherited, do you think that makes a difference? Thanks

So long as both properties fall within the exception then you are fine: that you acquired the interest in the property within the last three years and the share you have does not exceed 50%.

Thank you, I have since seeked further advice from HMRC / Solicitors and can confirm that this is correct. Hope this helps anyone in a similar situation in the future