Trustee and Stamp Duty

Mrs_Bood

I’m having real trouble finding a clear answer to this so I really hope someone can help. I am the joint trustee with my sibling of my mum’s home. It’s a life interest trust and my mum is the beneficiary. My name is on the title to the property. 

I want to buy my first home now, but I do not know if I am considered a first time buyer with regard to stamp duty or not. I’m told I’m ineligible for help to buy because my name is on the title to my mum’s house, but I just cant get an answer about whether it’s considered a “second home” for stamp duty or not. Can anyone help please?

AdrianC

If you are a trustee, then the property is owned by the trust, not you.

So, no, you would not be an owner of it for any purposes, not least SDLT.

But you should confirm that the property really IS in trust, and not in your names...

theartfullodger

Suggest it is name of trust, not your name, on deeds?  Who handled putting your name there please?

SDLT_Geek

Mrs_Bood said:

I’m having real trouble finding a clear answer to this so I really hope someone can help. I am the joint trustee with my sibling of my mum’s home. It’s a life interest trust and my mum is the beneficiary. My name is on the title to the property. 

I want to buy my first home now, but I do not know if I am considered a first time buyer with regard to stamp duty or not. I’m told I’m ineligible for help to buy because my name is on the title to my mum’s house, but I just cant get an answer about whether it’s considered a “second home” for stamp duty or not. Can anyone help please?

Is it really first time buyers' relief from SDLT which is the issue here?  The relief is suspended to 30 June 2021.  That is because the holiday is more generous up until then.

So your concern is perhaps about whether the 3% surcharge applies because of you being a trustee of your mother's home.  The answer is probably that the 3% is not due, because of there being a life interest trust in favour of your mum.  See the guidance here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09815  It is of some help, though not as clear as it might be.

If it really is first time buyers' relief you are interested in then there is a paper which covers the points here: https://www.blakemorgan.co.uk/wp-content/uploads/Downloads/Stamp-Duty-Land-Tax-First-Time-Buyers-Relief-29052019.pdf

Mrs_Bood

Thanks all. I think you’re right SDLT_Geek, that I mean the 3%. 

theartfullodger- The trust was drawn up by my parents’ solicitors. 

I asked my mum to look at the deeds recently. She said she had a paper called the “title” and that my name appears on that. I’ll ask her for a photograph of it. 

xylophone

You and your siblings are the Trustees of an IPDI Trust - you are on the Title Register but you are there as Trustees and your father's will evidences this.

The property  is not beneficially yours.

Mrs_Bood

OK that’s great. I was freaking out about the name on Title Register thing but it was definitely done as part of the Trust so would appear to be kosher. Thank you, I hope that’s that hurdle finally jumped.