Is 2nd SDLT payable on inherited house?

Newbietothisplace

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 

oldbikebloke

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.

SDLT_Geek

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.

greatcrested

It is indeed confusing, but my guess is

Newbietothisplace 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 duty
how long it may take to claim back 

A) you are replacing your main home, therefore you do not have to pay 2nd property SDLT.

N/A

Newbietothisplace

Thank you. 

getmore4less

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 duty
how 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.