The new rules for stamp duty with effect from April 2016 say that if, by the end of the day of the transaction of completing the property purchase, you own two or more properties, and the property you are buying is not replacing your main residence, then you will have to pay an extra 3% stamp duty on that purchase.
However, you may wonder what happens if you already own your own property and then you inherit a property, for example on the death of a parent, and that property is transferred into your name – in that case will you have to pay the extra 3% stamp duty on this property?
Well the current situation is, and we quote from the government website:
If you’re left land or property in a will
If you get a land or property under the terms of a will, there’s no need to tell HMRC and you won’t pay SDLT. This applies even if if you take on an outstanding mortgage on the property on the date the person died. This is on condition that no other consideration is given.
So, because of the fact that you don’t have to pay any stamp duty when you inherit a property, you will not have to pay the additional 3% stamp duty. Obviously you need to take note of the last sentence regarding no other consideration being given. You will also have to notify the Inland revenue as to which property is your main residence within 2 years of inheriting the property.
If you inherit jointly with a sibling and you buy out their half of the property then the situation is different as you are paying some money towards the property. Check with the Inland Revenue for the details pertaining to your exact situation and if stamp duty would be payable and if so how much.