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Hi all. I am a broker doing a (rare) mortgage for a first time buyer (I generally try and avoid resi business but you have to be grateful for recommends). She has 6 months ago inherited a property from her father which has been let for years....I am familiar with the SDLT form that asks 'On completion of this transaction how many properties will you own?' and obviously her answer should be two...which will mean she pays the higher (investors) rate of SDLT on what will be her own home. Can this be avoided as it seems a little unfair?
Sdlt is not payable on inherited property.
Stephen Coles Dip RLPM
Coles Property Management
32 Lune Grove
That's not the question. RobertSmith is asking if he can avoid SDLT on a second property not on the inherited property. I think if you own two residential properties is does not matter whether or not you paid SDLT on the first property you will be liable for the additional 3% on the second one
I'm not a tax expert but I am in the process of inheriting a property and I already own my own home. In my circumstance there is no SDLT to pay. Unfortunately, as your client has inherited before purchasing I don't believe the SDLT can now be avoided (presuming it is residential and above £40k). It's unfair but it's the way it is.
Sorry i misread, unfortunately i think higher rate will be payable
Has to pay it but can claim it back if 1st property sold within 3 years of completion on 2nd one ?
"If you sell your main home after you purchase your new home you’ll need to pay the higher rate. You can claim a refund of the higher rates if your old home is sold within 3 years of buying your new home."
DISCLAIMER just my personal opinion - for legal advice consult a qualified professional grown-up.
It was a let property and unless she now occupies it as her sole resi she would not be able to claim a refund
Hi me and my sister have just inherited a house between us. I already have a flat which I rent out. Thinking of making my sister an offer to buy it. How would the sdlt be worked out I assume on the price I give my sister. Cheers brian
If she owns 50% or less should be ok. Still in time to do a deed of variation to the estate.
Director of Tax Peplows Limited
CTA ACA FCCA
So sorry Brian, my comment was in response to the initial query. For you it would be worked out on the consideration you give her yes.