Deed of Variation - Stamp Duty certificate

DippySkippy

I've finally managed to make some progress - other executor/beneficiary has finally agreed to a DoV which removes the Will Trust - horray!
So their solicitor has drawn up a DoV which seems ok but going thru the IOV2 checklist under box 4 it asks " If the variation alters the destination of stocks, shares or marketable securities, does the variation contain a Stamp Duty exemption certificate?"

The estate does include some Shares - these are not specifically named in the Will or DoV but the DoV changes the residual estate split. Do I need a Stamp Duty exemption cert? and what is it anyway?

Thanks

Keep_pedalling

I think that would only be required if the assets had already been distributed rather than still sitting in the estate. 

DippySkippy

Keep_pedalling said:

I think that would only be required if the assets had already been distributed rather than still sitting in the estate. 

Thanks - not submitted IHT yet so nothing distributed. 

poseidon1

DippySkippy said:

I've finally managed to make some progress - other executor/beneficiary has finally agreed to a DoV which removes the Will Trust - horray!
So their solicitor has drawn up a DoV which seems ok but going thru the IOV2 checklist under box 4 it asks " If the variation alters the destination of stocks, shares or marketable securities, does the variation contain a Stamp Duty exemption certificate?"

The estate does include some Shares - these are not specifically named in the Will or DoV but the DoV changes the residual estate split. Do I need a Stamp Duty exemption cert? and what is it anyway?

Thanks

You did read the notes on page 2 of the checklist? Its pretty explicit regarding the requirement for the certificate and even  ( helpfully) provides the relevant wording.  

Transactions in stock market securities can attract stamp duty  liabilities unless an exemption applies. In this case the  category M  exemption is in point as set out in the relevant statutory instrument below -

https://www.legislation.gov.uk/uksi/1987/516/made

As a prudent  'belt and braces' measure, get the solicitor to amend the DOV accordingly.

 Hopefully the solicitor has not also omitted the standard S26 (6) CGTA 1992 election within the DOV, to ensure whoever is giving up rights to stockmarket securities is not deemed to have made a CGT disposal. 

Bad enough your having to deal with intransigent trustee/beneficiaries, without also having to contend with an incompetent solicitor.

DippySkippy

poseidon1 said:

DippySkippy said:

I've finally managed to make some progress - other executor/beneficiary has finally agreed to a DoV which removes the Will Trust - horray!
So their solicitor has drawn up a DoV which seems ok but going thru the IOV2 checklist under box 4 it asks " If the variation alters the destination of stocks, shares or marketable securities, does the variation contain a Stamp Duty exemption certificate?"

The estate does include some Shares - these are not specifically named in the Will or DoV but the DoV changes the residual estate split. Do I need a Stamp Duty exemption cert? and what is it anyway?

Thanks

You did read the notes on page 2 of the checklist? Its pretty explicit regarding the requirement for the certificate and even  ( helpfully) provides the relevant wording.  

Transactions in stock market securities can attract stamp duty  liabilities unless an exemption applies. In this case the  category M  exemption is in point as set out in the relevant statutory instrument below -

https://www.legislation.gov.uk/uksi/1987/516/made

As a prudent  'belt and braces' measure, get the solicitor to amend the DOV accordingly.

 Hopefully the solicitor has not also omitted the standard S26 (6) CGTA 1992 election within the DOV, to ensure whoever is giving up rights to stockmarket securities is not deemed to have made a CGT disposal. 

Bad enough your having to deal with intransigent trustee/beneficiaries, without also having to contend with an incompetent solicitor.

I read the notes but not clear to me. The shares will be sold once have probate and no transfer of ownership. I have checked and the IHT/CG wording is included. 

Something else I noticed is that DoV names executors - I'd have thought it should match Will in which the 3rd exec is 'directors of ...' rather than named person. Sigh