SDLTM29861 - Definition of a first-time buyer 鈥� Previous acquisition by a Settlement
Relief is not denied by virtue of a previous acquisition as a trustee of a settlement.
Relief is not denied to a purchaser by virtue of a previous acquisition by a settlement where that purchaser was a beneficiary of that settlement, unless property held by the settlement means the purchase is a higher rates transaction for the purposes of paragraph 1 of Schedule 4ZA, see SDLTM09815.听
For the definition of a settlement see SDLTM31720.
Example 1:
鈥楢鈥� (and others) acquired a dwelling as a trustee of a discretionary settlement. They were also one of the beneficiaries. 鈥楢鈥� is now acquiring a dwelling in their own name for their own occupation.
路听听听听听听 Relief is available to 鈥楢鈥� whether they occupied the trust dwelling or not. 听
Example 2:
鈥楤鈥� (and others) acquired a dwelling as a trustee of an interest in possession settlement. 鈥楤鈥� did not hold the interest in possession. 鈥楤鈥� is now acquiring a dwelling in their own name for their own occupation.
路听听听听听听 Relief is available to 鈥楤鈥� on their personal acquisition.
Example 3:
鈥楥鈥� 鈥楧鈥� and 鈥楨鈥� are trustees of an interest in possession settlement. They purchase a property for the beneficiary, 鈥楩鈥�, to occupy. 鈥楩鈥� has no prior interest in a property.
路听听听听听听 Relief is not available on the purchase as the trustees are treated as the purchasers and will not occupy the property as their own or main residence.
鈥楩鈥� is now acquiring a dwelling in their own name for their own occupation. 鈥楩鈥� asks the trustees to rent out the property.
路听听听听听听 Relief is not available to 鈥楩鈥� on their personal acquisition as they are treated as holding an interest in a dwelling under Schedule 4ZA, so the transaction would be a higher rates transaction and relief would be precluded under Schedule 6ZA paragraph 1(7).
If the trust property had been sold, rather than let, with 鈥楩鈥� subsequently purchasing a dwelling in their own name for their own occupation, the relief would apply as 鈥楩鈥� was never treated as the purchaser of the trust property and the higher rates would not apply to the purchase of the new property. 听听