A mortgage-free property is left to B in T’s will, a
specific bequest.
The assent by which the property is transferred to B is
exempt from stamp duty land tax.
T leaves B £500,000, a pecuniary legacy.
B accepts the mortgage-free property worth £300,000 in
part satisfaction of this legacy, an appropriation.
The assent by which the property is transferred to B is
exempt from stamp duty land tax.
The facts are the same as in examples 1 or 2 except that the
property was subject to a mortgage of £100,000, which was not
paid off on death.
The transaction is exempt from stamp duty land tax.
T’s will leaves £250,000 to trustees of a
discretionary trust and the remainder, the residue, to B.
On death the only asset is a property. It does not matter
whether at death the property was mortgage-free or whether there
was a mortgage which was not paid off on death.
B takes the whole property and the legacy to the trustees is
satisfied by an acknowledgement by B that he is indebted to the
trustees for £250,000.
This acknowledgement is money’s worth of £250,000
and so B has given chargeable consideration of £250,000 upon
which stamp duty land tax will be charged.
The facts are the same as in example 4 but the acknowledgement
of indebtedness is given by T’s executors, and the property
is then transferred to B with B assuming liability for the
indebtedness.
B has given chargeable consideration of £250,000 by
virtue of FA03/SCH4/PARA8 upon which stamp duty land tax will be
charged.
The facts are the same as in example 4 except that instead of
acknowledging indebtedness B charges the property with payment of
£250,000.
The charge provides that the sole right of recourse for the
trustees is against the property.
This is money’s worth and so B has given chargeable
consideration of £250,000 upon which stamp duty land tax will
be charged.
