A property in Stockport currently owned by a trust is to be transferred into the name of a minor. The minor's mother currently owns another property. How does one proceed in order to avoid paying the 3% stamp duty land tax (SDLT) surcharge? 

Arthur Weller replies:  

Firstly, in this country a property cannot be put into the name of a minor because a minor cannot be a legal owner. So, I think what you mean is that the property is being transferred into the beneficial ownership of a minor. Secondly, you make reference to the minor's mother. I think you may be referring to HMRC’s Stamp Duty Land Tax Manual at SDLTM09815 (tinyurl.com/ms86eeuu), which states that one looks at the position of the parents. But thirdly, to answer your question, there is no SDLT on this transaction, neither the extra 3% nor the principal. The reason is that when the trust transfers to the beneficiary, this is a gift for no consideration. See HMRC’s Stamp Duty Land Tax Manual at SDLTM00530 (tinyurl.com/y3rta6te).