Inheriting 2x properties can I avoid stamp duty?

Stop_me_Smee

Hi everyone,
I'm inheriting my father's estate which includes two houses and a bit of cash. I want to make ssureI understand stamp duty correctly and if possible to avoid the additional rate for buying a 2nd home. I am both the sole executor and the sole beneficiary of my dads estate. I have completed and paid the IHT, and am about to apply for probate. I am currently living in a rented property and I have never owned a home before. 

My dad had two houses - House A was his primary residence. House B is currently let to tenants. My desire is to sell house A and to use the funds to buy a first home for me and my wife. All being equal it would be nice to keep House B for the added income just in the short term, before selling it at some point to use the funds to invest for the future, but I think the cost of stamp duty would render it not worth it, any rental income for the next couple of years would be wiped out. 

Question 1 - So my understanding is that when I buy a house having sold House A, I will not count as a first time buyer, so ill be paying standard stamp duty, and if I still have house B I will pay the additional stamp duty for buying a second home. Is that correct? 

Question 2 - to avoid the additional stamp duty can I just ensure that I have sold both House A and House B before I purchase my own home? Or, as has been suggested to me, do I need to withhold house B as the executor, I.e. not release it to myself as the beneficiary, and simply sell it as the executor before releasing the funds to myself, so that I never technically owned the house? Or perhaps is there an option to withhold house B until I have purchased a home and then release it, so that I didn't have a second home at the point of purchase, would that avoid the stamp duty?

Sorry its a long question. Thanks for any help!

P.s. both houses are far from my current location and as such I don't want to make either of them my primary residence.

anselld

If you do not wish to retain either house then sell them both from the estate and retain your FTB status.  The estate can legitimately retain properties for up to two years without issue and possibly longer under exceptional circumstances.

Keep_pedalling

If you sell both properties within the estate then you will never have personally owned them and will still be a first time buyer. You seem reluctant to become a long term landlord so maybe this is the better option.

I am not sure if simply delaying the transfer of the rented property to your name after obtaining probate won’t be seen as a contrivance to avoid the extra tax but maybe someone else might have better knowledge on this subject.

Brie

Consider if you want to be a landlord.  It's a lot of work from what I understand.  Might be best to get the estate to sell the property (with or without tenant.)

Bigphil1474

Sell both, buy a new house, no additional stamp duty and reduced stamp duty as a first time buyer. Invest the surplus. Happy days.

BungalowBel

I would suggest you sell both houses and then buy your own as a FTB.

I hope you and your family have many happy years in your new home. x

p00hsticks

Brie said:

Consider if you want to be a landlord.  It's a lot of work from what I understand.  Might be best to get the estate to sell the property (with or without tenant.)

From what the OP says, they already have the responsibilities of a landlord in their capacity as executor of an estate.which includes a tenanted property. 

EssexHebridean

Another vote from here to get shot of both without ever transferring them out of the estate. Now is not a good time to become a landlord, particularly almost an "accidental" one, and even more so when the property concerned is a long way from where you will be based, I'd suggest. 

monkey-fingers

This. The estate can start the process of evicting the tenants. Perhaps with a suitable backhander (perfectly legal) to ensure they don't drag out the process.

Sell both houses. Lots of liquid cash which has already had all taxes paid.

Buy a new house, cash.

Win!