SDLT and Disabled Persons Trust

Reading the new additional rate rules for SDLT in relation to Trusts, my understanding is that parents purchasing a property for a disabled child (under the remit of a Disabled Person’s Trust) will get caught by the additional rate of stamp duty. Whilst the beneficiary has an IIP they do not have a right to reside for life or a right to income.

An alternative may be to set up the trust as a standard IIP so that he has a right to reside and then change it to a DPT later on… This seems to be getting round the problem through the back door.

Does anyone have any thoughts/views?

michelle collins
Cozens Hardy LLP