Q&As

Is it possible to claim a refund where the higher 3% rates of stamp duty land tax are charged to a bare trust purchasing a property for a child beneficiary because the child's parents have not yet sold their previous main house but plan to sell within three years? Provided all other conditions are satisfied and the parents plan to use the new property bought by the trust as their main residence, will the parents be seen as the purchasers for the purposes of condition D as well as condition C so that a refund can be sought?

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Produced in partnership with Michael Fluss of Keystone Law
Published on LexisPSL on 22/10/2020

The following Tax Q&A produced in partnership with Michael Fluss of Keystone Law provides comprehensive and up to date legal information covering:

  • Is it possible to claim a refund where the higher 3% rates of stamp duty land tax are charged to a bare trust purchasing a property for a child beneficiary because the child's parents have not yet sold their previous main house but plan to sell within three years? Provided all other conditions are satisfied and the parents plan to use the new property bought by the trust as their main residence, will the parents be seen as the purchasers for the purposes of condition D as well as condition C so that a refund can be sought?

Is it possible to claim a refund where the higher 3% rates of stamp duty land tax are charged to a bare trust purchasing a property for a child beneficiary because the child's parents have not yet sold their previous main house but plan to sell within three years? Provided all other conditions are satisfied and the parents plan to use the new property bought by the trust as their main residence, will the parents be seen as the purchasers for the purposes of condition D as well as condition C so that a refund can be sought?

The parents should be entitled to a refund provided they sell their previous main house within three years after the bare trust purchases the property.

In the case of an acquisition of UK land by a trustee of a bare trust, by virtue of paragraphs 10(2) and (3) of Schedule 4ZA to the Finance Act 2003 (FA 2003) (where the acquisition is the grant to the bare trustee of a lease) and FA 2003, Sch 16, para 3(1) (where the acquisition is of a freehold or existing leasehold interest), the beneficiary under the bare trust (here, the child) would (subject to FA 2003, Sch 4ZA, para 12—see below) be treated as the purchaser.

FA 2003, Sch 4ZA, paras 12(1) and 12(2), however, provide that where the child of a person

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