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    • alan gomez
    • By alan gomez 9th Jan 18, 3:12 PM
    • 1Posts
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    alan gomez
    1st time buyer Stamp Duty criteria
    • #1
    • 9th Jan 18, 3:12 PM
    1st time buyer Stamp Duty criteria 9th Jan 18 at 3:12 PM
    I have two sons who are both over 21, and now want to get on the property ladder as first time buyers and want to consider taking advantage of the current Stamp Duty exemption on the first 300K band. However the majority of the funds they have available come from a will which was left by their grandmother over 20 years ago and as they were under the age of 18 at that time, the family solicitor was requested to set up a trust to which probate was granted to him and her son-(myself/father to both boys) acting as Trustees and according to the deceased“s Will that the whole of her estate including a property be passed in trust to her grandchildren in equal shares on their attaining the age of eighteen.

    At the time of the Grant both boys- (grandsons) were under eighteen years, the property remained registered in the name of the deceased until transferred by the Trustees in a sale completed just recently- (December 2017). The boys have never owned a property here/or abroad and we just need clarification to see if they can be considered for first-time buyer status? Please let us know as this appears to be a bit of a grey area.

    Many thanks in anticipation and we look forward to your reply and advice.
Page 1
    • 00ec25
    • By 00ec25 9th Jan 18, 6:50 PM
    • 6,509 Posts
    • 6,062 Thanks
    00ec25
    • #2
    • 9th Jan 18, 6:50 PM
    • #2
    • 9th Jan 18, 6:50 PM
    so the trust has been closed and the property has been sold ?

    The trustees sold the property, but, your sons were both of age by then and therefore it was a bare trust since they were entitled to the proceeds of the sale according to the terms of the trust. So they are no longer FTB as they have already been classed as beneficial owners so are not eligible for FTB SDLT relief.

    read: https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers-guidance-note

    Chapter 3: Definition of a first time buyer
    In order to count as a first time buyer, a purchaser must not, either alone or with others, have previously acquired a major interest in a dwelling or an equivalent interest in land situated anywhere in the world.
    This includes previous acquisitions by inheritance or gift, or by a financial institution on behalf of a person under an alternative finance scheme.
    Last edited by 00ec25; 09-01-2018 at 6:57 PM.
    • SDLT Geek
    • By SDLT Geek 9th Jan 18, 9:30 PM
    • 263 Posts
    • 157 Thanks
    SDLT Geek
    • #3
    • 9th Jan 18, 9:30 PM
    • #3
    • 9th Jan 18, 9:30 PM
    It does indeed sound likely that the trustees were holding on a bare trust for the grandchildren. I guess the income from the property went to them?
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