How does the 3% SDLT surcharge apply where a dwelling has been inherited?


“I have a client who is buying a relatively high value property. He owns a one third of an equity interest (his share is worth around £30,000) of a flat that he has inherited in Malta. It is currently up for sale but unlikely to complete before the purchase of his new property in England. Does he have to pay the additional 3% SDLT? The new purchase will be his main residence.”

Source: BLG Member 


Interests with a value of less than £40,000 are not taken into account for the purposes of the 3% surcharge.

In addition, where a dwelling is inherited jointly and a person’s beneficial share does not exceed 50% his interest is ignored  for a period of three years beginning with the date of acquisition.

At the time of publication this response was correct however as tax legislation and practice change from time-to-time you should take specific advice before taking any action.

For further  guidance on Stamp Duty Land Tax please see Ann’s SDLT Questions & Answers. This free resource covers a wide variety of SDLT queries and they can be filtered by subject to find specific queries of interest.

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