Property stamp duty for inherited main home

mallen900

I have a question regarding stamp duty on a main home if I were to buy out the inherited shares of my mum-in-law estate. The situation is my wife and I own 62% of our main home as tenants in common with my late mum-in-Law who holds the remaining 38%. Mums shares is equally left to her 4 children including my wife. Giving them each a 9.5 percent share in the property. I want to buy out my wife’s siblings. But if I do. I believe that I will have to pay stamp duty based upon a 100% value of the property. Plus and as to make matters worse my dad’s property of which I own a 100% share would possibly make me liable for an additional 3% stamp duty as the owner of two properties. Can anyone confirm if this is this correct.

allconnected

No - you’ll pay standard stamp duty on the consideration you pay on each transaction. So at the moment probably nothing, unless the 9.5% shares  are each worth more than half a million. 

And you don’t pay the higher rate to increase the share you own in your main residence if you’ve lived in it for at least three years AND you already own 25% or more. This might apply to you?

All connected

GDB2222

I don't know the SDLT position, but one possibility would be to rearrange the shares within the estate, so you get less of other assets within the estate and more of the house? That assumes there are other assets (eg a bank account) with sufficient value.