My father and I are trustees of a discretionary trust (set up following the death of my grandmother in 2018). I am also the only named beneficiary of this trust. I am separating from my ex-wife, who is remaining in the family home (but my name will be taken off the mortgage). The trust is purchasing a property in Manchester for £249,000 (i.e., under the normal stamp duty land tax (SDLT) threshold), and this property will be my sole residence. I understand that the trust will have to be the registered owner of the property. I am looking to find out whether any SDLT will be payable on this purchase, as I am finding conflicting advice online. 

Arthur Weller replies:  

If you look at HMRC’s Stamp Duty Land Tax manual at SDLTM09835, you can see that purchases by 'companies and other non-individuals' are subject to higher rates: ‘Where a person purchases a dwelling as a trustee and the trust is neither a bare trust nor a trust for life or income the trustee is liable to the higher rates in the same situation as a company purchaser’. So, in your situation where the trustees of a discretionary trust are purchasing this property, the 3% SDLT surcharge will apply (NB Check that your trust is not a 'life interest trust'; see SDLTM09835).