Stamp Duty & Trusts

Teamkenny

Hi, 1st post.
My Father is selling/has sold his house valued at £340000.
It was put in a trust with him, me & my wife as trustees. 
We have been told that we/he is liable for stamp duty but can find no information either in HMRC or online help to confirm this. 
Does anyone know if it has to be paid or not. 
Thanks 
Teamkenny 😁

davidmcn

Teamkenny said:

We have been told that we/he is liable for stamp duty

Told by whom? Stamp duty is generally payable when you buy property, not when you sell it.

princeofpounds

A brief overview here:
https://www.michelmores.com/news-views/news/how-does-stamp-duty-land-tax-affect-purchase-residential-property-trusts

However; was there any chargeable consideration, or was this gifted? If no chargeable consideration, may not be an issue.
https://www.willwriters.com/blog/stamp-duty-land-tax-trusts/

princeofpounds

davidmcn said:

Teamkenny said:

We have been told that we/he is liable for stamp duty

Told by whom? Stamp duty is generally payable when you buy property, not when you sell it.

I think the OP is thinking about the trust having to pay SDLT, or the beneficiaries of the trust having to pay (can happen in some structures).

I should have said - chargeable consideration can include assuming mortgage debt, not just price paid.

Teamkenny

Thanks for the reply, I didn't make it clear. The house he is now buying at £320000 is what he is being told he/we have to pay stamp duty on. 

I cannot find any information to say if we do have to pay. 

It will be his sole residence , there is still only going to be 1 house in the trust (we rent) so we are a little confused 

xylophone

It was put in a trust with him, me & my wife as trustees. 

Is this a "family trust" arrangement as here?

https://www.howellslegal.co.uk/news/post/Gifting-The-Family-Home-Options-To-Consider

oldbikebloke

without you explaining what you mean by a trust how do expect anyone who knows the technicalities of trusts to help
in principle, yes a trust has to pay SDLT when purchasing, but without facts of the trust type it is impossible to say what applies in "your" case 

Teamkenny

It is a Home Protection Trust

Teamkenny

oldbikebloke said:

without you explaining what you mean by a trust how do expect anyone who knows the technicalities of trusts to help
in principle, yes a trust has to pay SDLT when purchasing, but without facts of the trust type it is impossible to say what applies in "your" case 

OK I understand that, but as this is my first post and I am lost in the details of what is going on I apologise if I don't ask the right questions first time. 

princeofpounds

Ah ok so the money, not the house, went into the trust.

Eats(,) Shoots & Leaves... Anyway...

No SDLT on your sale. Your buyer would have to pay but that's not your problem.

Any onward purchase would incur SDLT. It depends on the structure of your trust but if you father is a life beneficiary then it will usually be as if he owned the property. If there is some other set-up, particularly something more discretionary, then it can be more complex as the first link I provided mentioned.

Work with a conveyancing solicitor who is also familiar with trusts, they will sort it all out for you.

xylophone

It is a Home Protection Trust

If the property was gifted into Trust to avoid care home fees see

https://www.aprilking.co.uk/making-a-will/steer-clear-of-asset-protection-trusts/

https://helpandadvice.co.uk/home-protection-trust/


Re CGT https://www.taxinsider.co.uk/main-residence-relief-for-trustees seems relevant.