Jurisdiction(s):
United Kingdom

SDLT on post-interim appropriation of a deceased's house and a simultaneous beneficiary buyout: compliance, higher rates/first-time buyer relief, and trustee/personal representative considerations

Published on: 02 July 2025

Published by a LexisNexis Private Client expert

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See Q&A:

An interim payment from the deceased’s estate allocated the following shares:

A — 30%
B — 30%
C — 30%
D — 10%

A, B and C now intend to retain the deceased’s house, which could require repayment of some or all of the interim sums. At the same time, B plans to buy out C. A acts as trustee of a discretionary trust, and D consents to the proposal. What Stamp Duty Land Tax consequences arise from this arrangement, and are there any other tax implications? Assume throughout that A, B, C and D are all beneficiaries of the residuary estate. The initial issue is the appropriation of real property within the estate to some, though not all, of the beneficiaries. For guidance on the authority of personal representatives to meet, in whole or in part, a beneficiary’s entitlement or interest by deploying a specific estate asset, see Practice Note: Personal representatives and trustees—power of appropriation. That power should remain exercisable notwithstanding that an interim distribution has already been made...

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