Q&As

Can trustees (who are not themselves first-time buyers) benefit from first-time buyers' relief from stamp duty land tax where the beneficiary would otherwise satisfy the conditions for the relief to apply?

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Published on LexisPSL on 17/04/2018

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

  • Can trustees (who are not themselves first-time buyers) benefit from first-time buyers' relief from stamp duty land tax where the beneficiary would otherwise satisfy the conditions for the relief to apply?

Can trustees (who are not themselves first-time buyers) benefit from first-time buyers' relief from stamp duty land tax where the beneficiary would otherwise satisfy the conditions for the relief to apply?

Under section 41 of the Finance Act 2018 (FA 2018), 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 relief from stamp duty land tax (SDLT) for certain transactions with an effective date on or after 22 November 2017. For more details on when the relief is available, see Q&A: When does relief from stamp duty land tax for first time buyer’s apply? Does it apply if you are the sole purchaser acquiring a share of a property? For example, A and B currently own a property together. C is a first time buyer and wants to buy B's share.

The relief will not be available if the trustees’ purchase of the dwelling will be a ‘higher rates transaction’ within the meaning given by paragraph 2(1) of Schedule 4ZA to the Finance Act 2003 (FA 2003).

Whether or not the trustees’ purchase of the dwelling will be a higher rates transaction depends on factors including the type of trust

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