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SCHEDULE 5E+WHIGHER RATES RESIDENTIAL PROPERTY TRANSACTIONS

Annotations:

Modifications etc. (not altering text)

PART 5 E+WSUPPLEMENTARY PROVISIONS

Major interests in dwellings inherited jointlyE+W

34(1)This paragraph applies where by virtue of an inheritance—E+W

(a)a person (““P””) becomes jointly entitled with one or more other persons to a major interest in a dwelling, and

(b)P's beneficial share in the interest does not exceed 50% (see sub-paragraph (4)).

(2)P is not to be treated for the purposes of paragraph 5(1)(a) or 15(1)(b) as having the major interest at any time during the period of 3 years beginning with the date of the inheritance.

(3)But if at any time during that period of 3 years P becomes the only person beneficially entitled to the whole of the interest or P's beneficial share in the interest exceeds 50% P is, from that time, to be treated as having the major interest for the purposes of the application of paragraphs 5(1)(a) and 15(1)(b) (subject to any disposal by P).

(4)P's share in the interest exceeds 50% if—

(a)P is beneficially entitled as a tenant in common or coparcener to more than half the interest,

(b)P and P's spouse or civil partner taken together are beneficially entitled as tenants in common or coparceners to more than half the interest, or

(c)P and P's spouse or civil partner are beneficially entitled as joint tenants to the interest and there is no more than one other joint tenant who is so entitled.

(5)Sub-paragraph (4)(b) and (c) do not apply if, on the effective date of the transaction referred to in paragraph 5 or 15, P and P's spouse or civil partner are not living together (for the meaning of ““living together””, see paragraph 25(3)).

(6)In this paragraph “"inheritance”” means the acquisition of an interest in or towards satisfaction of an entitlement under or in relation to the will of a deceased person, or on the intestacy of a deceased person.

(7)This paragraph applies in relation to an interest acquired following a person's death as a result of a variation of a disposition (whether effected by will, under the law relating to intestacy or otherwise) of property comprised in that person's estate made within the period of 2 years after the person's death, as it applies in relation to an inheritance; and in such a case the reference in sub-paragraph (2) to the date of the inheritance means the date of the acquisition of the interest in accordance with the variation.

Annotations:

Commencement Information

I1Sch. 5 para. 34 in force at 1.4.2018 by S.I. 2018/34, art. 3