We have put our main home in Leeds into a family protection trust (FPT). My husband and I are now trustees, and our three children are beneficiaries. We are buying a second holiday home (not in a trust) and need to find out what stamp duty land tax (SDLT) we are required to pay. Could you help? 

Arthur Weller replies:  

To the best of my knowledge, an FPT is a settlor-interested discretionary trust. This means that by putting your primary home into the FPT, technically you have disposed of it. If you now buy a second home, you will have to pay the principal SDLT. However, with regard to the extra 3% SDLT surcharge, it depends. If the new home becomes your main residence, you will not have to pay the extra 3%. But if it doesn’t (e.g., if it is a second, holiday home), then quite likely you will have to pay the 3% surcharge. See HMRC’s Stamp Duty Land Tax Manual at SDLTM09800 and SDLTM09812. However, all that has been written here about paying the 3% only applies if you own another residential property besides your primary home. If you don't, so that when you come to purchase the second holiday home it will be the only residential property that you own, then the 3% will not apply.