Stamp duty on first home after inheritance

[Deleted User]

My partner and I are looking to buy next year sometime, between 315-400k depending on pay rises etc. 
Unfortunately, my partner just lost his mother to lung cancer and as a result, has inherited a 1 bedroom flat in Brighton, shared 50/50 with his brother. 
I know we are not seen as first-time buyers anymore, but would we have to pay the higher rate stamp duty on the new home? 
I found an article by the daily mail that appears to suggest that we wouldn't pay the higher rate because my partner is a joint owner of the interest by inheritance? 
Thank you in advance. 

SDLT_Geek

For the higher rates (the 3% surcharge) there is a three year period of grace before a share of up to 50% "counts against" a person, starting from when they acquire the interest.  https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09795

There is no such period of grace for first time buyers relief.  But has your partner actually acquired an interest in the property yet?  Perhaps it is vested in executors and perhaps it will be sold without him ever acquiring an interest in the property itself?

[Deleted User]

Ah, so as long as we buy within 3 years of him inheriting the flat, it should be ok? 
His brother has stated that he doesn't want to sell the property, and instead rent it out, so I don't think the property will be sold. 

davilown

Deleted_User said:

Ah, so as long as we buy within 3 years of him inheriting the flat, it should be ok? 
His brother has stated that he doesn't want to sell the property, and instead rent it out, so I don't think the property will be sold. 

@SDLT_Geek will be able to confirm.

does your partner really want to become a landlord or can his brother buy him out? He doesn’t need to be on the deeds as the executors should be looking to sell the property so the estate can be shared as per the will.

[Deleted User]

Deleted_User said:

Ah, so as long as we buy within 3 years of him inheriting the flat, it should be ok? 
His brother has stated that he doesn't want to sell the property, and instead rent it out, so I don't think the property will be sold. 

If you complete your purchase before the property is transferred into your partner's and his brother's names then the purchase would qualify for the FTB relief too.

caprikid1

Deleted_User said:

Ah, so as long as we buy within 3 years of him inheriting the flat, it should be ok? 
His brother has stated that he doesn't want to sell the property, and instead rent it out, so I don't think the property will be sold. 

Unfortunately it's the other way round, you need to sell the inherited flat , no way around it I am afraid.

[Deleted User]

caprikid1 said:

Deleted_User said:

Ah, so as long as we buy within 3 years of him inheriting the flat, it should be ok? 
His brother has stated that he doesn't want to sell the property, and instead rent it out, so I don't think the property will be sold. 

Unfortunately it's the other way round, you need to sell the inherited flat , no way around it I am afraid.

The inherited flat doesn’t need to be sold. As @SDLT_Geek pointed out earlier there is a grace period involving inherited properties. 

macman

Don't be an accidental LL. If your bro wants to be one, get him you buy out your share and then he can do as he wishes.