SDLT Additional Rate

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    SDLT Additional Rate by Patrick Cannon 2William Chalk
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    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 thanks

    #832 Reply
    SDLT Additional Rate by Patrick Cannon 3Patrick
    Guest

    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.

    #833 Reply
    SDLT Additional Rate by Patrick Cannon 2Justin Bryant
    Guest

    Yes; the son would have to have discretion to make an autonomous decision per the link below I expect:

    https://www.kingsleynapley.co.uk/comment/blogs/private-client-law-blog/tax-a-successful-flip-flop

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