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Adam Hunt
Adam Hunt, Accountant
Category: Tax
Satisfied Customers: 325
Experience:  FCCA, FFA, FFTA
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My sister and i own my late mum's property in trust 50/50

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my sister and i own my late mum's property in trust 50/50 and on mums passing are to dispose of and in accordance with the Will i am to distribute proceeds amongst siblings. my share in the Will is 40% and my 3 siblings get 20% each. Value £280K agreed so each sibling receives £56K. My siblings have agreed that I can get a mortgage and buy them out. Do i pay SDLT on the 60% value £168K to my siblings or just on the £56K to my co-trustee sister owner? It will be my second home.
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: i do not think so

Hi, I am one of the experts. I will come back to you little latter Plz bear with me.

Is that alright I reply back tomorrow to you because I think I will stay busy until late?

Customer: replied 3 months ago.
tat is ok thank you

Thank you and i will get back asap.

Thank you for your patience. Now, first of all, you are buying this property from all other beneficiaries. So altogether figure is £224k (280k - 56k) that you are buying out.

Now 125k + 99k = £224k,

1) for first, £125k, it is 0% payable.

2) for next 99k, you need to pay 2% = £1980

3) since it is your second home so you will pay an additional 3% on all of the value of £224, so 3% * 224k = £6720

Total SDLT in this example above is £8700 (1980+6720).

Hope I have answered your question. Please do me one favour that rate me before you leave so that I will be grateful to you.

Customer: replied 3 months ago.
but i already own 40% of the £280K? i am buying out £168K = 3 lots of £56K

Ok in that case. If 40% is yours already. Then, 168k is the value in question.

1) for first, £125k, it is 0% payable.

2) for next 43k, you need to pay 2% = £860

3) since it is your second home so you will pay an additional 3% on all of the value of £168, so 3% * 168k = £5040

Total SDLT in this example above is £5900 (860+5040).

Please keep rates in mind and you can reach to the SDLT figure as an estimate.

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