How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4416
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

We have purchased 4 flats in the last 18 months to hopefully

Customer Question

We have purchased 4 flats in the last 18 months to hopefully give my wife and I a retirement income, we were advised to include our 2 sons on the deeds for inheritance tax purposes. Our eldest son is now trying to purchase a house for himself, our question is, is he liable to pay the additional stamp duty. Many thanks .
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Whilst putting your sons name on the deeds was a good step in avoiding Inheritance ax (IHT) just remember from 2017 through to 2020 if a house is left to a child the 325K IHT limit rises progressively to 500K.

I fear that as he already owns houses the 3% SDLT will apply. The purpose of the surcharge is to deter individuals from owning more than one house. If he disposes of his other properties within three years then the surcharge may be refunded.

I am so sorry to have to rain on your parade.

Customer: replied 1 year ago.
Spoken direct to tax helpline 0300(###) ###-####. They have informed me that because my sons 1/4 share in each property is less than £40000 he will only be liable to pay the normal duty and NOT the extra 3 percent. Many thanks for your input and realise you did not have the values of the flats when you gave me your opinion. Many thanks
Expert:  bigduckontax replied 1 year ago.

Yes there is the 40K limit which I should have mentioned. I had reasonably assumed that with four flats the value would have been well above that level. Good news for him though.

Please be so kind as to rate me before you leave the Just Answer site.