Stamp duty, first time buyer, inheritance

greycat24374

Hello

My father passed away nearly 2 years ago and left a will which put his house into trust with instruction to sell and the proceeds be divided between me and 2 siblings. I am an executor, trustee and beneficiary from the sale of the property. Probate has been granted and the house is on the market currently. 

Separate to this, I am in the process of buying a property with my husband. Both of us have not purchased property before so are hoping to get first time buyer relief on stamp duty. 

I have spoken to our solicitor (both probate and the conveyancing) and they have advised that we will still qualify as first time buyers as my late fathers property is not going to be transferring into mine or my siblings names. They also said this is because we are beneficiaries to the proceeds of the sale rather than inheriting shares of the house. 

I have been looking this up as I cannot get my head around it all and want to make sure I am doing everything correctly. 

Would I still be a first time buyer? 

SDLT_Geek

greycat24374 said:

Hello

My father passed away nearly 2 years ago and left a will which put his house into trust with instruction to sell and the proceeds be divided between me and 2 siblings. I am an executor, trustee and beneficiary from the sale of the property. Probate has been granted and the house is on the market currently. 

Separate to this, I am in the process of buying a property with my husband. Both of us have not purchased property before so are hoping to get first time buyer relief on stamp duty. 

I have spoken to our solicitor (both probate and the conveyancing) and they have advised that we will still qualify as first time buyers as my late fathers property is not going to be transferring into mine or my siblings names. They also said this is because we are beneficiaries to the proceeds of the sale rather than inheriting shares of the house. 

I have been looking this up as I cannot get my head around it all and want to make sure I am doing everything correctly. 

Would I still be a first time buyer? 

You should still count as a first time buyer for SDLT, so long as the beneficial interest in the property has not passed to you ahead of sale (it would normally pass by assent, by appropriation, or by the administration of the estate being complete).

There is a detailed write up on first time buyers relief for SDLT here: https://www.blakemorgan.co.uk/wp-content/uploads/Downloads/Stamp-Duty-Land-Tax-First-Time-Buyers-Relief-29052019.pdf

The text starting half way down page 7 should help you, along with example 3.3.4 over the page.

greycat24374

SDLT_Geek said:

So providing I just wait until the sale is completed and we distribute the proceeds as per the will, I will still be a first time buyer? 

EssexHebridean

You will. Your solicitor is advising you correctly. Just be absolutely sure that if a different solicitor is acting on the sale of your late father's property that they understand that it mustn't be transferred into your name before it is sold!  It sounds like your father was very wise in the way he left his affairs. 

Keep_pedalling

greycat24374 said:

SDLT_Geek said:

So providing I just wait until the sale is completed and we distribute the proceeds as per the will, I will still be a first time buyer? 

It does not mater if you wait until it is sold, you don’t own part of your fathers house it is still owned by the estate.