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    • Popell
    • By Popell 8th Jan 18, 7:32 PM
    • 9Posts
    • 0Thanks
    SDLT on inherited share of property?
    • #1
    • 8th Jan 18, 7:32 PM
    SDLT on inherited share of property? 8th Jan 18 at 7:32 PM
    Hi first post so please feel free to send abuse if this is in wrong section....
    Wifes father has passed away and he had 80% interest in two properties (total worth approx£260k) remaining 20% belong in equal parts to my wife and her sister.
    His wish expressed in his will is for my wife to take his share of the properties and her sis to get equivalent amount in shares. (Calculating value of a share of a property in itself seems a minefield with discounting for probate, tennants in common etc)
    Internet search suggests no SDLT payable for inherited property and indeed I rang the tax office and he has confirmed HOWEVER our solicitors (wife works there as an assistant) have said it is payable.
    The inheritance will give wife 90% share and we may look to buy sisters 10% (also expressed as a wish in the will.
    Whether we do or not will depend on if we can afford to do so.
    Both wife and sister own their own property.
    Any views/advice chaps?
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    • Popell
    • By Popell 11th Jan 18, 9:25 AM
    • 9 Posts
    • 0 Thanks
    Thanks for continuing support, just written long reply then hit refresh by accident and lost the lot!
    I'll try again:-
    Keep pedalling....:yes his intention was to have an even split of value between his two daughters with the properties going to wife to give some pension provision in later life. He had previously wanted to favour wife/me over (significantly better off) SIL/BIL but wife persuaded him to even things out for fairness. It is my belief that he knew his 80% share would be discounted by the way his instructions are worded. If an agreed value cannot be negotiated then there is recourse to having RICS appointed valuation. I have found out that this will cost minimum of a grand but also that it could come back with a figure that may be discounted by possibly 10-15%. This would make the BIL even less happy. Should we go this route then it would be understood that we both sign up to accepting the RICS valuation, this route also immediately means that wife has exercised the option to take the properties with the SDLT implications and that if we go this route then there can be no apportioning can be done.

    getmore4.....Discounting in this instance is due to tenants in common with any share being worth less than actual %age on the open market.
    The will indicates that the market value should not take into account that parts are owned by the daughters. BIL has interpretted this as simply taking 80% of om value. Solicitor states that the meaning is to ignore WHO owns the shares but still value as a share of a tenants in common property.

    Probably missed some of the points I had covered in my first draft!

    Thanks again guys
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