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Yes, on a £200k purchase - IF you aren't an FTB.Flu_strength_Darren wrote: »Thought it was £1500?
If you are, it's £0.
If, though, you still owned 50% of the parental home on the date of completion of your purchase, THEN it's going to be +3%, so £7,500...0 -
Phew.
No as I said, sold to brother.0 -
so 2 years after death you received a direct sum of money from your brother which was related wholly and exclusively to the fact your share of the home was given to brother in return
that is a textbook definition of a beneficial interest (you got the money) and therefore, whether the property was, or was not, in your personal name is not the deciding factor. You had an interest in a property and you sold that interest. The property was freehold so that makes your interest a "major" one - it is not defined as a set amount of money or %. Your interest was that of a beneficiary to a will trust whereunder you directly received money from the sale of the asset held in the will trust. That is what will catch you irrespective of you never having dealt with the change in legal ownership. The guidance is clear on that fact
You are not a first time buyer
what is less clear is whether you yourself lived in the property for this 2 years after death and before the sale? If you did, fine, the next comment is irrelevant. But if you did not, then you have a CGT liability which needs to be worked out to see if you owe any Capital gains tax on the increase in value during those 2 years
you have never owned another property therefore reference to the higher rate SDLT is irrelevant since you will not be buying an additional property whilst continuing to have a major interest in an ongoing property
you will be purchasing a property for 200k at standard rate SDLT, so will pay £1,500 SDLT0 -
2 years? :eek: Then clearly you cannot claim that the executers dealt with this during probate or when the estate was wound up.Flu_strength_Darren wrote: »My mother left me her 50% share.
Tennant's in common my father lived in house for 2 years after mother's death.
My father moved out and we decided to sell property, for sentimental reasons my brother bought it.
My mother git half the sale, I got the other half.
Nothing was ever registered in my name.
I'm now buying new property, so will I be liable for capitol gains tax.
Probate was granted to myself, me and brother executors of will.
I believe legally it was my father who sold the property as he was legal owner?
You owned the 50% of property on a beneficial basis for two years, even if you tried to hide that fact by not registering your ownership.
You are not a FTB.
Your father lived there for those two years but you did not. Therefore you are liable for any Capital Gains Tax on 50% of the increase in value between the date of death and date of sale to your brother. Less allowances of course.0 -
On the death of the mother the father becomes the sole legal owner (ie 100%) but since the property was previously owned as tenants in common he will have held the legal ownership on trust for himself and the other two beneficial owners.No. He was the legal owner of 50%.
Since the property was owned as Tenant In Common, any sale would have required the signitures of the father (who owned 50%) and the owner of the other 50%. On mother's death, the Executers (OP & brother) could have signed for the other 50% - but surely you would know if you'd signed...??!!
However the alternative would be that the Executers passed the (50%) property to the Beneficiary/OP who then sold. But
a) he says it was never registered in his name and
b) again - surely he would know!
Most likely is that Executers sold during Probate and the inheitance was passed to him as £ rather than as property, so I believe OP never had an interest in the property and remains a FTB.
Happy to be corrected though!
There should have been a schedule A restriction on sale which prevented the father selling on his own account without bringing in a 2nd trustee.0 -
the death of the mother the father becomes the sole legal owner (ie 100%) but since the property was previously owned as tenants in common he will have held the legal ownership on trust for himself and the other two beneficial owners.
There should have been a schedule A restriction on sale which prevented the father selling on his own account without bringing in a 2nd trustee.
This sounds about right, there was a "restriction A" and the actual sale was all my father's name, I did sign something on transfer but everything else was all dad in the wording.
It's no Biggie, I'm not trying to avoid anything,if I need to I'll pay it no problem, just curious as it's not clear.0 -
You could have signed that 'something' as executor or as beneficiary, two quite separate roles.Flu_strength_Darren wrote: »the death of the mother the father becomes the sole legal owner (ie 100%) but since the property was previously owned as tenants in common he will have held the legal ownership on trust for himself and the other two beneficial owners.
There should have been a schedule A restriction on sale which prevented the father selling on his own account without bringing in a 2nd trustee.
This sounds about right, there was a "restriction A" and the actual sale was all my father's name, I did sign something on transfer but everything else was all dad in the wording.
It's no Biggie, I'm not trying to avoid anything,if I need to I'll pay it no problem, just curious as it's not clear.
What needs to be decided from a FTB stamp duty point of view is whether the beneficial interest in the property previously owned by your mother was still in the hands of the executors or whether it had passed to the two beneficiaries.
If it was still in the hands of the executors then you are still a FTB but if it has passed to you/your brother then you are not a FTB.
It sounds as if the administration period of the estate had come to an end before the property was sold because the residue of the estate had been ascertained before the sale. In which case the beneficial interest would have passed from the executors to the beneficiaries even though they was no formal paperwork to document that.
In my view you are no longer a FTB but whether HMRC would ever pick up on that is another matter.0 -
Hmmm as I posted earlier I was executir.
All I did was literally apply and get probate, it was straightforward as everything was sorted out in the months before money wise, IE mum kept nothing over £15k in an account, had zero debt etc
We had no need to do anything with the house as dad continued living in it as per the trust in the will.
It's only when he moved out we decided to sell0 -
You were but by the time you signed 'something' to sell the house it's likely you were no longer acting with your executor hat on.Flu_strength_Darren wrote: »Hmmm as I posted earlier I was executir.
All I did was literally apply and get probate, it was straightforward as everything was sorted out in the months before money wise, IE mum kept nothing over £15k in an account, had zero debt etc
We had no need to do anything with the house as dad continued living in it as per the trust in the will.
It's only when he moved out we decided to sell0 -
Indeed. You yourself say:You were but by the time you signed 'something' to sell the house it's likely you were no longer acting with your executor hat on.
So probate was sorted pretty fast and the Estate therefore wound up. Your 'Executer' hat was therefore removed as the role had ended.All I did was literally apply and get probate, it was straightforward as everything was sorted out in the months before money wise, IE mum kept nothing over £15k in an account, had zero debt etc
We had no need to do anything with the house as dad continued living in it as per the trust in the will.
2 years later, when the sale took place, you were wearing your hat as 'Beneficiary' and had beneficial ownership of 50%.0
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