SDLT Confusion

Raggie

Hi, just watching the budget and realized I may have an issue. 

We (wife and I) are looking to down size our family home, kids gone, place to big etc.. so were planning to put the house on the market in the new year to buy a new place. 

My wife father passed away a few years back and left her and her brother his share of his main home. The other half staying with her mum who has a life interest. 

So she "owns" 25% of another property.

If we purchase a new home ourselves do we have to pay the SDLT Higher rate as I suppose she will own (all be it 25% on one she can not sell) two properties?

I've hit google etc and TBH not sure.. does anyone here a have any knowledge on this? 

Cheers

p00hsticks

I'm not 100% sure,m but when similar queries have popped up her before, my understanding is that if there is a life interest for your mother then your wife's share is (or should be) held in trust and so does not count as an additional owned property for SDLT purposes. 
Who was executor for your late father in law ? 
Do you know if a formal  Immediate Post Death Interest Trust (IPDT) was set up as part of dealing with the estate ?   

saajan_12

In principle this is nothing new, just the rate has increased. If you buy a property when you already own one, then you're liable for the additional rate stamp duty, which was 3%, will be 5% after the changes go in. The exception is if you buy a new main home and sell your prior main home. If this transaction is at teh same time then you're exempt, if there's a delay in selling then you pay the extra 3/5% and then request a refund upon sale. 

mebu60

Replacing your principal private residence does not attract the higher rate of SDLT even if you own other property. Don't believe that has changed today. 

Raggie

p00hsticks said:

I'm not 100% sure,m but when similar queries have popped up her before, my understanding is that if there is a life interest for your mother then your wife's share is (or should be) held in trust and so does not count as an additional owned property for SDLT purposes. 
Who was executor for your late father in law ? 
Do you know if a formal  Immediate Post Death Interest Trust (IPDT) was set up as part of dealing with the estate ?   

Hi, we chucked everything to the solicitor to sort out, was a stressful time, and I wanted to keep an arms distance from everything as .. well.. "family politics", and it was a neat way to ensure that my wife was not "short changed".   I will (if needed) drop the solicitors a message to check. Thanks 

Raggie

saajan_12 said:

In principle this is nothing new, just the rate has increased. If you buy a property when you already own one, then you're liable for the additional rate stamp duty, which was 3%, will be 5% after the changes go in. The exception is if you buy a new main home and sell your prior main home. If this transaction is at teh same time then you're exempt, if there's a delay in selling then you pay the extra 3/5% and then request a refund upon sale. 

Thanks, Yeah it was more of a hmm does that apply moment - yes it will be "main home to main home" so that is good to know .. cheers.

p00hsticks

Raggie said:

p00hsticks said:

I'm not 100% sure,m but when similar queries have popped up her before, my understanding is that if there is a life interest for your mother then your wife's share is (or should be) held in trust and so does not count as an additional owned property for SDLT purposes. 
Who was executor for your late father in law ? 
Do you know if a formal  Immediate Post Death Interest Trust (IPDT) was set up as part of dealing with the estate ?   

Hi, we chucked everything to the solicitor to sort out, was a stressful time, and I wanted to keep an arms distance from everything as .. well.. "family politics", and it was a neat way to ensure that my wife was not "short changed".   I will (if needed) drop the solicitors a message to check. Thanks 

As others have pointed out (and I had originally missed) as your intention is to replace your main residence,  then the details around how this other one is held is neither here nor there - you will not be increasing the number of properties you own and so are not liable for the extra SDLT.