Stamp Duty & inheritance

[solo2]

I'm probably over thinking this but I know myself and my brother have a 50/50 split of our parents assets once passed but I want to gift my share directly to my daughter. She wants to buy their home with whatever financial share I give her that I've inherited from them and then buy my brother out his part by raising a mortgage - we are assuming this could be up to 10 years from now, they are in their 80's but one is perfectly fit and healthy whilst the other is likely to pass within the next 12/24 months.

Would she have to pay stamp duty on the home if I gift her my part and she buys him out of his part? Also i was wondering if it might be easier to ask my parents to replace her in the will instead of me and would that make it more beneficial in avoiding paying lots of stamp duty. A google of this just mentions a deed of variance and 7 years for gift but not anything really relevant to this.

Can anyone help with info/links before I have to go see a solicitor, which I know would be the best idea but can't help but feel the answer should be out there in the internet somewhere...

[Grandad Gaz]

I wouldn’t worry about it yet. It’s quite possible their home could be used for care home costs!

[anonymous-user]

Stamp Duty is charged on "consideration", in other words it's usually charged on the amount actually "paid".

So,

• No Stamp Duty on gifts whether in life or by Will.
• If it's not a gift Stamp Duty is charged on the amount "paid" for any or all of the property.

So far as I'm aware if you pay £250k to buy half a £500k house you pay Stamp Duty calculated on £250k (not half of what the Stamp Duty would be on £500k). However, you can't reduce Stamp Duty by buying half the house the house now and the other half in a couple of months time.

[Comacchio]

Another thing to be wary of is inheriting a property or a share in a property voids your first time buyer status I believe.

[solo2]

Comacchio said:

Another thing to be wary of is inheriting a property or a share in a property voids your first time buyer status I believe.

The half share of this house wouldn't exceed £500K anyway so not likely to be an issue but thanks for the pointer.