Beneficiary Purchasing Property - Stamp Duty

Plodder99

Hello

I’m a long-time reader, first time poster and I’m hoping the knowledgeable people on this forum will be willing and able to help please!

My brilliant and much missed Grandad sadly passed away earlier this year. My mum (his daughter) is the sole executor of Grandad’s Will and has successfully obtained Grant of Probate herself after submitting the arduous IHT 400 forms necessary to claim the Residence NRB from my pre-deceased Nan. The Estate is under the £1m threshold (2 x NRB and 2 x Residence NRB) so there is no IHT to pay.

Grandad’s Estate is made up of his home and investments, and there are a number of beneficiaries under his Will – all are children (including Mum) or grandchildren (including me). His Will reads that his ‘residuary estate’ should be divided into parts and paid to each beneficiary as per his wishes. My mum is generously transferring her inheritance to me via a DIY Deed of Variation. I am hoping to purchase the home as my main residence and my mum as executor has accepted my offer (£670,000) which is based on an RICS Level 2 Home Buyer’s Survey and Valuation which I had commissioned. (IHT forms based on 3 Estate Agency valuations which is higher than the agreed price & RICS valuation). As an aside, mum has the blessings of the other beneficiaries although her understanding is she doesn’t need their formal approval, so long as she is acting in the best interests of the Estate.

We had thought we might be able to do the property transfer by ourselves due to knowing all there is to know about the property since my Grandparents had it built in the late 70s and saving unnecessary legal fees for all. However, the more we’ve researched on this forum and the Land Registry website etc, we feel it would be prudent for both myself and the estate to have legal representation. This is basis of my question please as we have received conflicting quotes from two law firms who both state they can represent both parties within the same law firm using different solicitors:

Both my mum and I understand that as executor, she can deduct my inheritance (majority of which comes via her due to the DofV) from the price agreed for the property, leaving a balance for me to pay which will come from the proceeds of my house sale, and it is this figure that will subject to Stamp Duty Land Tax. I am not a first time buyer but my house is sold STC which will hopefully complete early in the New Year. The Stamp Duty payable will be 5% above £250k (providing purchase happens before the increase in April) so the liability should be c. £1000. Can anyone confirm this is correct/their understanding too please and provide any links to further reading?

One law firm has quoted on the above basis, and another has quoted sale and purchase fees based on the agreed price (£670,000) in its entirety (before taking into account my inheritance) and is adamant that SDLT will be payable on the full agreed price (£670k) and not the cash balance actually being transacted that will be settled using my house sale. We have queried this but their position remains the same. Hope they have it wrong and we simply go with the other firm!

I’m sorry for the missive but hope it helps to set the scene and any suggestions/guidance as to next steps would be much appreciated.

Thanks in advance

Keep_pedalling

SDLT is based on the amount paid, none will apply to the % you inherited.

Plodder99

Thank you @Keep_pedalling. I called HMRC SDLT helpline but they couldn't give me a definitive answer about it and suggested I write into their technical team. 
Do you/ other forum users know of any Government guidance on this please which I'm struggling to locate? 

RAS

@SDLT-Geek, is the nearest thing locally.