Mrs A owned a property. She transferred it into a discretionary trust, beneficiaries herself and children. In 2017 she agreed to sell property to one of her daughters and purchase a new property with the sale proceeds. The sale proceeds were transferred to the purchase file and the new property was purchased in the name of the same 4 trustees, although a new trust document the same as the previous was prepared by Mrs A, the same day as the transfer to the four trustees.
I believe the intention was to effectively appoint the sale proceeds to Mrs A, for her to purchase the new property and then immediately transfer it into the new trust to avoid the additional rate stamp duty. The property was purchased for £180,000 so stamp duty was paid but not the additional. I am not sure this has worked, it appears to me that the Trustees of the original trust purchased the new property within that original trust and were therefore liable for the additional stamp duty. Is this the case and if so is there anything that can be done to amend the position? The balance of the sale proceeds were paid to Mrs A but there is no documentation to support her purchasing the new property in her sole name, nor is there a transfer to that effect.
Paul Mounce
Gosschalks