SDLT and remaindermen. First time buyer relief?

My client is a remainderman on a residential property pursuant to his late grandmother’s will. His parents are the life tenants. HMRC helpline cannot advise whether a remainder interest is a ‘major interest’ for SDLT purposes which would defeat FTB relief when he purchases a flat in the coming weeks. Has anybody come across this please?

Sue Warwick
Lewes Smith

My understanding is as follows.

Remainder interests are not major interests for FTBR. Hence the purchase of a property by a person who already possesses a remainder interest does not preclude FTBR from applying.

FTBR also requires that the purchase does not qualify for the 3% charge. The 3% charge should not apply on the purchase where a remainder interest is held (but would apply had the interest been a life interest).

Malcolm Finney

1 Like

Thank you, Malcolm.

Sue Warwick
Lewes Smith

Late to this party - but presumably the same would be true in Scotland, for a fiar of a liferent trust?
Thanks