Client’s father left a will with a discretionary trust element into which all assets that were eligible for APR and BPR were placed. My client and his siblings are potential beneficiaries of this trust.
The assets are farmland and a farm-worker’s cottage. Client’s father also left a letter of wishes expressing the wish that the aforesaid assets pass to my client on the basis that he pays a sum of money to his sisters. He is happy to do that and on that basis the trustees will appoint the assets out of the trust to my client. The trustees would not make the appointment otherwise.
For SDLT purposes my client will be acquiring a chargeable interest. Would the payment to his sisters fall within FA2003/Sch16/Para 7 - consideration for exercise of power of appointment or discretion (SDLTM31760) so that the payment to sisters will be treated as consideration for the acquisition and be liable for payment of SDLT on the amount of the payment.
Jeffreys & Powell Solicitors