Stamp Duty calculation after inheriting property abroad

SDLT_Geek

stevat said:

@SDLT_Geek, if I may ask one more thing, do you know what happens if the inheritance comprises of multiple properties?

e.g. if there are 3 residential properties and my wife inherits 50% (or 25%, in another scenario) of each one, does this mean that we still won't have to pay the 3% surcharge as her share still is 50% (or less) of the total estate? 

Or does the fact we're now talking about share in multiple properties changes things and means we're liable to the extra 3%?

I did read the SDLT manual and I think that if she is at 50% of the "whole/major interest" then the extra 3% is not payable, but I'm not sure I'm interpreting the manual (and the relevant terminology) correctly.

PS1 we're not forgetting the 3-year limit
PS2 the whole thing is quite complicated inheritance-wise, hence these extra scenarios
PS2 I'm assuming that a non-residential property is irrelevant to this discussion?


Thank you for your time, and to anyone else who may happen to have a read at this

The "leeway" within the 3% surcharge rules for inherited shares not exceeding 50% can apply to multiple properties.

stevat

SDLT_Geek said:

The "leeway" within the 3% surcharge rules for inherited shares not exceeding 50% can apply to multiple properties.

Hey @SDLT_Geek, thanks!

Just to clarify with an example: let's assume my wife inherits 25% of Property A, 25% of Property B and 25% of Property C. In this case the 3% is NOT payable, as her individual share on each property does not exceed 50% (and does not amount to 25%+25%+25%=75%, which is higher than the 50% threshold). Correct?

On the contrary, if she was to inherit 25% of Property A, 25% of Property B but 51% of Property C, then the extra 3% would be payable because on property C her individual is more than 50%, correct?

SDLT_Geek

stevat said:

SDLT_Geek said:

The "leeway" within the 3% surcharge rules for inherited shares not exceeding 50% can apply to multiple properties.

Hey @SDLT_Geek, thanks!

Just to clarify with an example: let's assume my wife inherits 25% of Property A, 25% of Property B and 25% of Property C. In this case the 3% is NOT payable, as her individual share on each property does not exceed 50% (and does not amount to 25%+25%+25%=75%, which is higher than the 50% threshold). Correct?

On the contrary, if she was to inherit 25% of Property A, 25% of Property B but 51% of Property C, then the extra 3% would be payable because on property C her individual is more than 50%, correct?

Yes, that is right.  That is assuming the 51% share in Property C is worth £40,000 or more.  If it is worth less than this, then that share would "not count against her" either, under a different rule.

peterhjohnson

It may matter which country this inherited property is in. If it's in France, it (or your share) became your property instantly and automatically when the owner died.
In England, the property  become part of the deceased's "estate" and if it's been left to you, there will be a delay before the property is transferred to the "beneficiaries" (you)

stevat

peterhjohnson said:

It may matter which country this inherited property is in. If it's in France, it (or your share) became your property instantly and automatically when the owner died.
In England, the property  become part of the deceased's "estate" and if it's been left to you, there will be a delay before the property is transferred to the "beneficiaries" (you)

Thanks Peter - in our case the property becomes part of the estate and there's a delay before it's transferred to the. beneficiaries. That typically happens within 4 to 12 months.