Memo of appropriation and first time buyers

I have an estate where there is a decent size gain so Executors have signed a MOA and about to serve the beneficiaries. Does this effect the first time buyer status of the beneficiaries? Thank you

Yes it does
Maxine Higgins
Citroen Wells

When researching the subject of FTB status recently in connection with trusts and estates I came across the following statement on a couple of (apparently reliable) websites:

HM Treasury have confirmed that you will still be classed as a first-time buyer for Lifetime ISA purposes if the trust was only set up to sell the property following a death, provided the title does not transfer to your name or to a trust of which you are a beneficiary.

This is obviously in connection with LISAs rather than SDLT, and frustratingly, I have been unable to find the original source of the HM Treasury statement. Also, I have not as yet checked the LISA regulations to see how they correspond with the SDLT regulations for FTB relief, which are something of a minefield anyway in relation to trusts and estates. However, it led me to wonder whether there is any mileage in claiming that the same principle would or should apply for SDLT FTB purposes where a property is appropriated to the beneficiaries of an estate for the sole purpose of a sale, as that seems to be what the Treasury statement is contemplating.

Thank you Diana

That is really useful

My next question for the forum is can this be reversed if already done, my view is not









I haven’t seen anything produced by HMRC/Treasury along the lines stated by Diana. However, given the objective of LISAs and FTBR it wouldn’t perhaps be surprising that SDLT relief as suggested is granted to a property purchase using LISA proceeds (post a property inheritance).

However, I suggest that some form of equivalence as raised by Diana, will not be available re SDLT relief where appropriation occurs in normal circumstances.

Malcolm Finney

The PRs appropriation is effective from the date of their resolution from which date the beneficiaries become the beneficial owners of the property ie irreversible.