We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Is 2nd SDLT payable on inherited house?
Options

Newbietothisplace
Posts: 5 Forumite

I am selling and buying and only when we got the information from our solicitors about owning a second property did it suddenly occur to me that I had inherited, via a family trust, my late fathers property.
My mother still lives at the property, she and i are named as trustees and from what i can gather so long as as i dont have a share of the property >50% and will not be using it as my main residence (which i wont) then the 3% stamp duty has to be paid up front at time of completion but can then be claimed back within 3 years.
For reference, the property I`m buying is £375k, selling at £330K and I am using savings to fund the difference so no additional borrowing...unless I have to find money for the stamp duty and it takes a long time to claim it back!
Guidance on the below would be helpful, thanks in advance.
A) if i do have to pay second stamp duty
how long it may take to claim back
My mother still lives at the property, she and i are named as trustees and from what i can gather so long as as i dont have a share of the property >50% and will not be using it as my main residence (which i wont) then the 3% stamp duty has to be paid up front at time of completion but can then be claimed back within 3 years.
For reference, the property I`m buying is £375k, selling at £330K and I am using savings to fund the difference so no additional borrowing...unless I have to find money for the stamp duty and it takes a long time to claim it back!
Guidance on the below would be helpful, thanks in advance.
A) if i do have to pay second stamp duty

0
Comments
-
your post is rather jumbled up and you are confusing yourself tying rules for inheritance with a scenario that they do not relate to
Key question: WHAT are you selling:
a) your mother's home? or
b) a separate property that you own and currently live in as your own main home?
if the property you are selling is your current main home then
- if sold before purchase no higher rate
- if sold after purchase, higher rate is payable on purchase but refund claimable if the sale is within 3 years of the purchase
https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800
the inherited property is effectively irrelevant if the above applies as you are "replacing" your main home, as what matters is the timing of that replacement, not the fact you own a second property.
3 -
Yes, oldbikebloke is right. If you are selling your home (where you live as your only or main residence) and buying another one (again to live in as your only or main residence) then the 3% surcharge should not apply to the purchase, even if you have other property interests.2
-
It is indeed confusing, but my guess isNewbietothisplace said:I am selling and buying (selling Property A which is your main home, and buying Property B to replace it as your main home) and ..... occur to me that I had inherited, via a family trust, my late fathers property.(property C - my 2nd property, which is, and will remain, your mother's main home)
My mother still lives at the property, she and i are named as trustees .........................
Guidance on the below would be helpful, thanks in advance.
A) if i do have to pay second stamp dutyhow long it may take to claim back
N/A
2 -
Thank you.0
-
Newbietothisplace said:I am selling and buying and only when we got the information from our solicitors about owning a second property did it suddenly occur to me that I had inherited, via a family trust, my late fathers property.
My mother still lives at the property, she and i are named as trustees and from what i can gather so long as as i dont have a share of the property >50% and will not be using it as my main residence (which i wont) then the 3% stamp duty has to be paid up front at time of completion but can then be claimed back within 3 years.
For reference, the property I`m buying is £375k, selling at £330K and I am using savings to fund the difference so no additional borrowing...unless I have to find money for the stamp duty and it takes a long time to claim it back!
Guidance on the below would be helpful, thanks in advance.
A) if i do have to pay second stamp dutyhow long it may take to claim back
What sort of trust?
Who has the beneficial interest in the property?
The most common is a IPDI trust from a deceased parent with the surviving parent being the life tenant and has 100% of the beneficial interest in the property
people think they have inherited when they are just remaindermen of a interest in possession trust.0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards