Trust set-up; Will variations; Forgotten purpose; Here or there?
Trust set-up
The potential stamp duty liabilities when property is transferred to a trust.
I have a client who would like to set up an interest in possession trust into which he will transfer a residential property. The beneficiary will be the life tenant who does not own any other properties. Am I correct that the trust would not need to pay the extra 3% stamp duty on transfer?
Looking to the future what would be the tax position if the trustee later appoints beneficiaries to the interest in possession trust who do own residential properties? What happens to stamp duty? Will extra then be payable and does it matter that there are separate beneficiaries occupying different properties?
Further what would be the position if in the first situation described above the life tenant later purchases a property of their own? What are the...
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