Advice required re inherited property and buying out sister

AdrianC

voucherqueen42 said:

Thanks everyone for your replies.  It’s not been covered re stamp duty - someone said we would be liable for stamp duty by paying my sister 50%, around £125000. But if it’s done informally and not through a solicitor how would anyone know? 

Because, obvs, the tax man doesn't mind being lied to and will never know...

Right now, the property is still owned by the estate, correct?
If you buy your sister's half from the estate, then there's no SDLT. You are simply inheriting the entire property.
If you buy your sister's half is disbursed to her from the estate, then you buy it from your sister, there may be SDLT.

greatcrested

As Adrian says.

1) Executers transfer property from name of deceased to your sole name as Beneficiary. You pay sister the agreed sum. No SDLT on inheritance.

or

2) Executers transfer property from name of deceased to joint names (you and sister) as Beneficiaries. No SDLT as above. You then buy sister's share and transfer property from joint names to your name. SDLT is payble. And the tax man will know because you cannot register the property with the Land Registry without HMRC confirmation of SDLT payment!