Q&As

A person is the beneficiary of a bare trust under which a property is held. The property is to be transferred to the beneficiary from the trustees. However, the property is subject to debts which will be assumed by the beneficiaries. Is stamp duty land tax payable on the assumption of debts (capped at the market value of the property)?

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Produced in partnership with Mary Ashley of Old Square Tax Chambers
Published on LexisPSL on 27/02/2020

The following Tax Q&A produced in partnership with Mary Ashley of Old Square Tax Chambers provides comprehensive and up to date legal information covering:

  • A person is the beneficiary of a bare trust under which a property is held. The property is to be transferred to the beneficiary from the trustees. However, the property is subject to debts which will be assumed by the beneficiaries. Is stamp duty land tax payable on the assumption of debts (capped at the market value of the property)?

A person is the beneficiary of a bare trust under which a property is held. The property is to be transferred to the beneficiary from the trustees. However, the property is subject to debts which will be assumed by the beneficiaries. Is stamp duty land tax payable on the assumption of debts (capped at the market value of the property)?

We have assumed that the interest held by the trustees is a freehold interest, the trustee has not been granted a lease and is not granting a lease.

The stamp duty land tax (SDLT) provisions are set out in Part 4 of the Finance Act 2003 (FA 2003).

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