My client and his wife created life interest trusts in their mirror wills. Wife is now deceased and my client wants to downsize. The trust allows the life tenant to apply the sale proceeds to the purchase of another property to be held on the like trusts. The trustees and the life tenant will have the new property held in their 3 names. What is the effect on SDLT if the property is replacing the life tenants main residence? The trustees have their own properties themselves. Will the higher rate of SDLT be payable? If anyone can explain the HMRC rules please
The second home rules in Sch 4ZA, including the exemption, should apply as if the life tenant is the purchaser. The status of the trustees is irrelevant.