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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.Ìý

For the definition of a settlement see SDLTM31720.

Example 1:

‘Aâ€� (and others) acquired a dwelling as a trustee of a discretionary settlement. »Ê¹ÚÌåÓýappy were also one of the beneficiaries. ‘Aâ€� is now acquiring a dwelling in their own name for their own occupation.

·ÌýÌýÌýÌýÌýÌý Relief is available to ‘Aâ€� whether they occupied the trust dwelling or not. Ìý

Example 2:

‘B� (and others) acquired a dwelling as a trustee of an interest in possession settlement. ‘B� did not hold the interest in possession. ‘B� is now acquiring a dwelling in their own name for their own occupation.

·ÌýÌýÌýÌýÌýÌý Relief is available to ‘Bâ€� on their personal acquisition.

Example 3:

‘Câ€� ‘Dâ€� and ‘Eâ€� are trustees of an interest in possession settlement. »Ê¹ÚÌåÓýappy purchase a property for the beneficiary, ‘Fâ€�, to occupy. ‘Fâ€� has no prior interest in a property.

·ÌýÌýÌýÌýÌýÌý 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.

‘F� is now acquiring a dwelling in their own name for their own occupation. ‘F� asks the trustees to rent out the property.

·ÌýÌýÌýÌýÌýÌý Relief is not available to ‘Fâ€� 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 ‘Fâ€� subsequently purchasing a dwelling in their own name for their own occupation, the relief would apply as ‘Fâ€� was never treated as the purchaser of the trust property and the higher rates would not apply to the purchase of the new property. ÌýÌý