You are contacting
James Cook
Partner
Probate & UK trusts, tax and estate planning
James Cook answers a reader’s question in The Sunday Times.
1 minute read
18 April 2019
Partner
Talk to James about UK trusts, tax & estate planning & Probate & Wills & succession planning
Stamp duty land tax (SDLT) will most likely be payable if you buy out your siblings’ shares of your father’s property. For example, if the home is worth £1m and your siblings’ shares total £750,000, the liability would be £27,500. SDLT is calculated on a sliding scale, with no charge on the first £125,000, 2% on the next £125,000, 5% on the next £675,000, 10% on the subsequent £575,000 and 12% on the portion over £1.5m. If you already own a residential property, an extra 3% SDLT would be added, so the total stamp duty in this example would be £50,000.
Capital gains tax (CGT) might also come into play, at a rate of 18% or 28% (depending on your income-tax band), although this would be levied on your siblings, not you. All the children would be deemed to have acquired the property at the date-of-death value, but your siblings would be liable for CGT if there had been any increase in value following your father’s death on their respective shares, less their annual CGT exemptions (£11,300 for 2017-18 and £11,700 for 2018-19). In a slow pre-Brexit property market, there might be little or no gain in value to be taxed.
First featured in The Sunday Times on 10 Feb 2019.
18 April 2019
Tax & Estate Planning & UK trusts, tax and estate planning
Shorter Reads
Private Wealth & Tax & Estate Planning & UK trusts, tax and estate planning
Shorter Reads
UK/USA Tax & estate planning & International trusts, tax and estate planning & Tax & Estate Planning & UK trusts, tax and estate planning
Shorter Reads
Private Wealth & UK trusts, tax and estate planning & Wills & Succession Planning
Shorter Reads
Luxury assets & Private Wealth & Tax & Estate Planning & UK trusts, tax and estate planning & Wills & Succession Planning
Shorter Reads
Tax & Estate Planning & UK trusts, tax and estate planning
Shorter Reads
Private Wealth & UK trusts, tax and estate planning & Wills & Succession Planning
Shorter Reads
Luxury assets & Private Wealth & Tax & Estate Planning & UK trusts, tax and estate planning & Wills & Succession Planning
Shorter Reads
UK/USA Tax & estate planning & Luxury assets & Media, arts and culture & Tax & Estate Planning & UK trusts, tax and estate planning
Shorter Reads
You are contacting
Partner
james.cook@collyerbristow.com
Subscribe
Please add your details and your areas of interest below
Article contributor
Partner
Specialising in UK trusts, tax & estate planning, Probate and Wills & succession planning
FINDING OUR ARTICLES OF INTEREST? SUBSCRIBE TO RECEIVE THE LATEST CONTENT DIRECT TO YOUR INBOX
Subscribe nowCollyer Bristow continues growth with Commercial Litigation Partner hire
© 2022 Collyer Bristow LLP
© 2022 Collyer Bristow LLP
Latest from Collyer Bristow
< Back to menu
I have an issue and need your help
Scroll to see our A-Z list of expertise
< Back to menu
I'd like to just search for something