Q&As

Can a purchaser benefit from first-time buyer’s relief from stamp duty land tax if they previously inherited part of an estate which included a freehold property but where they received no interest in the property as it was sold to pay taxes for the estate (before distribution of the estate to beneficiaries)? Does it matter that the purchaser owns an interest in a company that owns a residential property?

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Published on LexisPSL on 14/06/2019

The following Tax Q&A provides comprehensive and up to date legal information covering:

  • Can a purchaser benefit from first-time buyer’s relief from stamp duty land tax if they previously inherited part of an estate which included a freehold property but where they received no interest in the property as it was sold to pay taxes for the estate (before distribution of the estate to beneficiaries)? Does it matter that the purchaser owns an interest in a company that owns a residential property?

Can a purchaser benefit from first-time buyer’s relief from stamp duty land tax if they previously inherited part of an estate which included a freehold property but where they received no interest in the property as it was sold to pay taxes for the estate (before distribution of the estate to beneficiaries)? Does it matter that the purchaser owns an interest in a company that owns a residential property?

For the purposes of this Q&A, it is assumed that:

  1. the property that was part of the estate was not a specific gift to the beneficiary and that they received no interest in the property

  2. the property was sold to pay taxes for the estate prior to distribution of the estate to beneficiaries

  3. the inheritance related solely to the UK, and

  4. the new property to be purchased is situated in England or Northern Ireland

First time buyers of residential property where the purchase price is £500,000 or less and who intend to occupy the property as their main home can benefit from first-time buyer’s relief from stamp duty land tax (SDLT) for certain transactions with an effective date on or after 22 November 2017.

In order for the relief to apply, the conditions that must be satisfied are as follows:

  1. there must be a purchase of a major interest in a single dwelling

  2. the purchase price must be

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