Trusts

Question 1

Explain the Stamp Duty Land Tax implications, assuming the trustees purchase the flat for Miles’ future use in December 2023.

Answer 1

• If a trustee of a discretionary trust buys a property, the purchase is treated as if it were
  made by a company (rather than an individual).
• The trustees will be liable for the SDLT.
• The higher rates of SDLT will apply to the purchase price of £180,000 ie 3% = £5,400.
• To avoid the higher rates of SDLT the property should be bought through a bare trust
  for Miles.