SDLT and remaindermen. First time buyer relief?


My client is a remainderman on a residential property pursuant to his late grandmother’s will. His parents are the life tenants. HMRC helpline cannot advise whether a remainder interest is a ‘major interest’ for SDLT purposes which would defeat FTB relief when he purchases a flat in the coming weeks. Has anybody come across this please?

Sue Warwick
Lewes Smith

(Malcolm Finney) #2

My understanding is as follows.

Remainder interests are not major interests for FTBR. Hence the purchase of a property by a person who already possesses a remainder interest does not preclude FTBR from applying.

FTBR also requires that the purchase does not qualify for the 3% charge. The 3% charge should not apply on the purchase where a remainder interest is held (but would apply had the interest been a life interest).

Malcolm Finney

1 Like

Thank you, Malcolm.

Sue Warwick
Lewes Smith