Statutory Trusts and SDLT

Trusts Discussion
1

I am dealing with a statutory trust where the trustees intend purchasing a property. There is one child aged 17. Can we get the first time buyer rate for SDLT ( the child does own another property and never has)? It is not a bare trust but the child is a Bereaved Minor so can we say they have an interest in possession by virtue of s31? Otherwise, I can see it being adjudged to be trust where the beneficiary has no interest ( until and if they reach 18) and so the higher rate will apply. What to forum members think?

Nick Sewell
Bevirs Law

2

I don’t think s 31 helps (see the recent discussions on this forum about the application of the RAT to such trusts), but depending on the date of death, s 32 Trustee Act could be used to advance the trust fund onto bare trusts for the beneficiary prior to the purchase. That is probably the simplest option, and I believe FTB relief will then be available.

**Diana Smart
**Gordons LLP