I am dealing with an estate where the deceased’s two children provided the purchase money for him to buy his council property under the right to buy scheme in 2018. A deed of trust was entered into stating that the deceased held the property on trust for his two children. The discount applied was just over £100,000. Neither child lives or has lived at this property.
The deceased died earlier this year and his Will leaves his estate to his two children. The property has been valued by estate agents at £450,000…
I understand that the children cannot dispose of the property within 5 years of the purchase, if they do they will have to repay some of the discount, but it can be assigned to them. What I cannot seem to find out is how HMRC would treat this, would the proportion of the discount still be held as belonging to the deceased? Reservation of benefit?
Thank you for your help.
Beverley Morris & Co