SDLT 3% higher rates on later purchase by bare trust beneficiary

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Q&As

Higher rates of SDLT on additional residential properties

Refer to the Practice Note: Higher rates of SDLT on additional residential properties, which confirms that a beneficiary of a bare trust or a life interest is treated as the purchaser for the 3% higher rates; see also paragraphs 10–11 of Part 3 of Schedule 4ZA to the Finance Act 2003.

The Practice Note also sets out the SDLT position where the beneficiary is a minor. If the remaining conditions in that Practice Note are fulfilled (for instance, the properties are dwellings and both interests in land are major interests), the beneficiary must apply the additional 3% rate of SDLT when acquiring an extra property.

For further guidance, see:

HMRC's SDLT manual: SDLTM09815 Interests Treated As Owned By An Individual, Trusts, Children [Including Children Subject To The Mental Health Acts]
Commentary:
- Settlements and bare trusts: Tolley's Stamp Taxes 2019–20 4.19 [4.19]
- Stamp duty land tax charge: Tolley's Estate Planning 2020–21 [11.30]
- Higher rates transactions: Tolley's Property Taxation 2020–21 [16.25]...

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Web page updated on 27/05/2026

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