Help with stamp duty

JillyP1980

After my father passed away, my mum made me a registered owner of her house. Her will states I will get the other half when she passes away.
I want to buy my first house and I'm not sure if I'll need to pay stamp duty. So much confusing information online. 
Thanks.

sheramber

Unfortunately, you  are no longer a first time buyer and if your half share is worth more than 40K then you will incur the additional stamp duty charge for a second property. 

Keep_pedalling

I am afraid your mother has lumbered you with a big fat additional 5% tax as you will be buying a second property. Probably also created an unnecessary CGT liability when it is eventually sold.

SDLT_Geek

JillyP1980 said:

After my father passed away, my mum made me a registered owner of her house. Her will states I will get the other half when she passes away.
I want to buy my first house and I'm not sure if I'll need to pay stamp duty. So much confusing information online. 
Thanks.

More information is needed before much help can be given.

Is the property you are buying in England, so the relevant stamp duty is stamp duty land tax?

Your father had had a half share in the house?  If so, how was your father's share in the house left?  For example it could have been left to you outright, or it could have been left on trust, with a right for your mother to live in the property for life, with a remainder to you.

Or perhaps he had a half share which passed to your mother and your mother made a life time gift of a half share to you?

If left to you outright by your father, how long ago was it that his half share was transferred to you (it might help if that was within the last three years).

JillyP1980

SDLT_Geek said:

JillyP1980 said:

After my father passed away, my mum made me a registered owner of her house. Her will states I will get the other half when she passes away.
I want to buy my first house and I'm not sure if I'll need to pay stamp duty. So much confusing information online. 
Thanks.

More information is needed before much help can be given.

Is the property you are buying in England, so the relevant stamp duty is stamp duty land tax?

Your father had had a half share in the house?  If so, how was your father's share in the house left?  For example it could have been left to you outright, or it could have been left on trust, with a right for your mother to live in the property for life, with a remainder to you.

Or perhaps he had a half share which passed to your mother and your mother made a life time gift of a half share to you?

If left to you outright by your father, how long ago was it that his half share was transferred to you (it might help if that was within the last three years).

The property will be in England. 

Dad died in 2016. His half went to my mum. In 2021, his half was signed over to me and her Will was updated to show that her half of the house will come to me, when she passes away. 

SDLT_Geek

JillyP1980 said:

SDLT_Geek said:

JillyP1980 said:

After my father passed away, my mum made me a registered owner of her house. Her will states I will get the other half when she passes away.
I want to buy my first house and I'm not sure if I'll need to pay stamp duty. So much confusing information online. 
Thanks.

More information is needed before much help can be given.

Is the property you are buying in England, so the relevant stamp duty is stamp duty land tax?

Your father had had a half share in the house?  If so, how was your father's share in the house left?  For example it could have been left to you outright, or it could have been left on trust, with a right for your mother to live in the property for life, with a remainder to you.

Or perhaps he had a half share which passed to your mother and your mother made a life time gift of a half share to you?

If left to you outright by your father, how long ago was it that his half share was transferred to you (it might help if that was within the last three years).

The property will be in England. 

Dad died in 2016. His half went to my mum. In 2021, his half was signed over to me and her Will was updated to show that her half of the house will come to me, when she passes away. 

So it sounds as if you received an outright lifetime gift of a one half share in 2021.  Assuming that you still own that half share when you buy a house and the half share is then worth £40,000 or more, the extra 5% SDLT will apply to your purchase.

Keep_pedalling

Do you currently live with your mother? If you don’t then you have a potential CGT liability when that house is eventually sold. The gift will also be classed as one with reservation of benefit so will not fall out of her estate, but that is only a problem if her net worth exceeds £1M

RAS

You've already been alerted to the possible CGT liability in your previous thread. 

StarkCouzens

How did your mother pass the house to you, Declaration/deed of trust?

Is your ownership registered with Land registry? If not sure, you can buy the title for £3.

If its not been registered with Land Registry its possible this can be undone if its just a paper exercise. I would speak to a Solicitor that has experience with a deed of trust.

It may be possible to do another declaration of trust to pass half the house back to you mother. But whether you can back date this to the original point of transfer to make it seem like it never happened i am not sure and again seek some legal advise.

If you cant undo the original transfer, you could still transfer it back to her, you wouldn't be classed as a first time buyer still, but you wouldn't be classed as buying a second home so potentially not have to pay the extra 5% that comes into affect in april (currently 3%). But ask these questions to someone who is qualified.

Always seek legal advise whether its IFA or Solicitor before accepting anything when it comes to ownership.

I am not qualified to give any advise, im just offering suggestions. I have been in the property industry a long time and have used decoration of trust a number of times.