Am I eligible for stamp duty exemption?
Question
I inherited a 12.5% share in a property but the land registry has not had my name added to it as yet. Arthur Weller Replies: When someone inherits a property from someone who dies, there is no stamp duty land tax (SDLT). Inheriting a property from a deceased is not a chargeable transaction for SDLT purposes. At this point the person acquires beneficial ownership in the property, even though it is not yet legally in their name. Later on when the personal representatives or executors of the deceased estate legally transfer the property into the name of the inheritor there is also no SDLT to pay. This is because all that has happened at this second stage is a change in legal ownership, but there has been no change in the beneficial ownership – which is what counts for SDLT. This can be seen at http://www.hmrc.gov.uk/manuals/sdltmanual/SDLTM31710.htm and Furthermore nothing is being paid for these transactions to take place, i.e. there is no consideration. This is another reason why there is no SDLT to pay. |