We have a trust for a disabled beneficiary. The trustees have a discretion to pay income to her. They have a power to accumulate income. There is no class of beneficiaries as referred to by the SDLT manual. Does the fact that the trustees have a power to accumulate income mean that the Higher rate of SDLT applies?
Sch 4ZA para 4 provides a purchase by trustees is a higher rate transaction unless para 10 or 11 applies in which case the purchaser will be deemed to be the relevant beneficiary not trustee (and para 4 will not apply) and the beneficiary’s circumstances need to be considered.
If under the trust a beneficiary is neither entitled to occupy the dwelling for life nor is entitled to the income earned from the dwelling then neither para 10 nor 11 is satisfied.
Para 13 may be in point on the basis that a beneficiary is neither entitled to occupy the dwelling for life nor is entitled to the income earned from the dwelling in which case the higher rate will apply.