This topic contains 2 replies, has 1 voice, and was last updated by Justin Bryant 2nd June 2017 at 12:20 pm.
- 2nd May 2017 at 3:22 pm #831
In the following scenario, do readers feel the transaction could be caught by Additional Rate SDLT?
Mother, who already owns a residence, wants to gift cash funds to her son and daughter equally for IHT mitigation. Mother wishes son and daughter to use the funds to purchase a property. Daughter already owns a property but son does not. If son receives the gifted funds and purchases the property in his name, can he then simply gift a half share to his sister (whether by legal transfer or declaration of trust) without the arrangement being caught by Additional Rate SDLT? Son would of course be making a PET for IHT purposes and a disposal for CGT. Any thoughts would be much appreciated.
Many thanks31st May 2017 at 5:24 pm #832
William, it looks like s75A could apply to charge SDLT on second sibling on half the total consideration given for the original purchase at the 3% additional rates, but with a credit for half the SDLT paid at normal rates by the first sibling on the original purchase so may not be fair for the first sibling.2nd June 2017 at 12:20 pm #833
Yes; the son would have to have discretion to make an autonomous decision per the link below I expect: