Question about stamp duty (and other stuff) on inherited property

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Question about stamp duty (and other stuff) on inherited property

18 posts & 7 voices | Started 3 months ago by mastiles_fanylion | Latest reply from cynic-al

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mastiles_fanylion - Member

Can anyone help me and my brothers.

Story is - we have inherited a property (equal shares) from our parents. My younger brother wants to live in the property (and we are happy with that).

The property was owned outright by our parents and our younger brother simply wants to buy out our shares. We have agreed a total value of the property at £240k (so £80k share each). That is pretty well much bang on market value from asking price/sold values as per Zoopla etc.

So first question - does he have to pay stamp duty on it? Obviously the total value is over the lower rate stamp duty level but he owns 1/3rd of it anyway. He seems to think he can just pay us the money and have the house (he doesn't need to get a mortgage so he would simply hand over the cash so it could be 'under the radar').

Second question - does he have to do anything to make the property legally his (ie in case he wants to sell it further down the line?)

He is completely set against using solicitors for some reason so we haven't involved any yet.

Can anyone give me any advice here???

Posted 3 months ago #
wwaswas - Member

He is completely set against using solicitors for some reason

Who's the executor for their will - is there a solicitor involved in that?

tbh, gettign some advice would involve no cost and I'd be wanting to get something legal drawn up so that you know you're not due to pay inheritance tax or anything and that he's got clear title to the property at the end.

Posted 3 months ago #
b r - Member

He is completely set against using solicitors for some reason so we haven't involved any yet.

Well it can't be for money reasons as he seems to have £160k 'spare' - or is it that the £160k is not so legit...

Posted 3 months ago #
Grizla - Member

I sold my half to my sister, in a similar situation. I don't believe we paid any stamp duty.

Solicitor did it all for us though, while he was sorting everything else out.

I was in a state at the time too, and perhaps don't remember it ight.

Posted 3 months ago #
cynic-al - Member

Won't use solicitors for a £160K transaction? IDIOT!

I'd have thought he has liability on the £160K transferring to him under the sale. I think he'll need to register with the Land Regsitry for title to pass to him, and they may not accept his registration without all the papers - inc a SDLT certificate.

Posted 3 months ago #
mastiles_fanylion - Member

Well it can't be for money reasons as he seems to have £160k 'spare' - or is it that the £160k is not so legit...

Entirely legitimate money - just got in and back out of the property market at the right time then moved in with mum before she died so had little outgoings against his decent salary.

Our uncle is the sole executor but my brother is pretty well much doing all the work. And although he has lots of spare cash he is VERY careful with his money. Which is probably why he has lots and I don't

Posted 3 months ago #
mastiles_fanylion - Member

inc a SDLT certificate

What is one of those?

Posted 3 months ago #
wwaswas - Member

What is one of those?

ask a solicitor

Posted 3 months ago #
cynic-al - Member

What you get from the SDLT place when you pay your SDLT on a transaction.

Posted 3 months ago #
thekingisdead - Member

I've been through a similar thing myself, handled probate and transferring the deeds all without a solicitor.

Iirc, once you have g.o.p, you can file for assent with the land registry to change the title on the property.
No stamp duty should be payable on an inherited property, I think.

In theory, you could be liable for cgt, depending on the value you inherited the property at, and the value you sell your share for (though if these two events have occurred recently I doubt you'll have anything to pay)

Inbox me if you have further questions, I have all the land reg forms at home.

Posted 3 months ago #
mastiles_fanylion - Member

Mum died last June and there has been no increase in value on the property so I don't think that is something to worry about.

Posted 3 months ago #
mastiles_fanylion - Member

Just looked on the HMRC site...

Property left in a will
If the property is acquired under the terms of a will, there's no need to notify HMRC and no SDLT is payable.

You no longer need to complete the SDLT 60 self-certificate if you don't need to notify HMRC about a Stamp Duty Land Tax transaction. Find out more about transactions that don't need an SDLT return.

So that one is out...

Posted 3 months ago #
thekingisdead - Member

You can get all the forms you need (thinks its called assent) on the land registry

Form as1 rings a bell. Not the clearest forms to fill in (bit of technical jargon) but not rocket science.

Posted 3 months ago #
mastiles_fanylion - Member

Just spoken to HMRC and we do need the SDLT stuff sorting as he is paying us money from outside of the estate to buy us out.

Posted 3 months ago #
cynic-al - Member

Yes - it's a separate transaction to inheritance.

BTW I don't know if SDLT issue a certificate (they used to stamp the deed up here before the change) but there will be something the registry will need ot see to register title.

Posted 3 months ago #
ScottChegg - Member

How much would a solicitor cost? £500?

Let them do the legwork.

Posted 3 months ago #
mastiles_fanylion - Member

Yes - it's a separate transaction to inheritance.

I guess so but it is all linked to that inheritance.

If he had no brothers he would pay no stamp duty, if he had 10 brothers he would pay £2,272 stamp duty.

Still, can't grumble at the opportunity to give our esteemed Powers more tax can we?

How much would a solicitor cost? £500?

Let them do the legwork.

I would be happy to but he doesn't want to involve them and I am happy for him to play it how he wants to as he went through hell in the months leading up to mum's death looking after her. I just want to make sure we do it legally and worry about it ending up costing more or less by involving a solicitor isn't the issue really.

Posted 3 months ago #
cynic-al - Member

Unless there's an exemption for stamp duty I don't see how inheritance is relevant...he's paying SDLT on the value of property transferred.

Posted 3 months ago #

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