I’m concerned that I’ll be liable for the 5% stamp duty land tax (SDLT) surcharge when purchasing a residential property in Birmingham as my main residence. I’m named as a beneficiary and tenant-in-common under a declaration of trust for another residential property, which is not and has never been my main residence. I don’t own any other property outside the trust. Will HMRC treat me as owning a property for SDLT purposes? If so, will this trigger the 5% surcharge? If yes, are there any options to avoid or mitigate the charge? 

Arthur Weller replies:  

If your portion of the trust property that you currently own is worth £40,000 or more, the new purchase that you are about to make will be deemed a second property, and you will have to pay the 5% SDLT surcharge. If it's important to you not to pay the 5% SDLT surcharge, you could either give away your share in the trust property, or reduce your percentage share in the trust property so that what remains with you is worth less than £40,000.