Stamp duty unforeseen amount

[iwannaseeyoudance]

Just wondered if anyone has experience of this? My in-laws left a one bedroom flat to my dh and 2 dcs. At the time approx 8 years ago it was valued at 100k now I guess around 180k.
My dh has 80% the two kids 10% each.
It is rented out but the kids don't receive any of the rent. They live at home and I only charge them 100£ pm for everything so that they can save . In case you think we are very mean!!This includes my daughters bf.
Now my dd and bf have saved enough money for a deposit and also can get a reasonable mortgage but have been told she will have to pay an extra 3% stamp duty on a property they buy. They are looking to spend approx 450k?
We think this will be more than the value of the amount her "share" of the flat is worth.
Is this correct ? And is there any way of avoiding this?

Selling the 10% in the flat

Oh and avoiding the tax really isn’t possible without breaking the law. The legislation is pretty comprehensive.

Why are they not being paid their share of the rent that they're entitled to?

Interesting one- as a ftb stamp duty in England on £450k would be around £7.5k

However, I’m not sure she’ll count as a ftb due to share of ownership in another property

If she doesn’t qualify as ftb it’s be £12.5k

Yes I think that she will not qualify as a FTB
Seems quite harsh as her share of the flat will only be worth 18k maximum maybe less if we sell and capital gains comes into play.
They do not get the rent as they live at home and only pay £100 per month housekeeping for absolutely everything' (London) so that they can save.
Oh well never mind at least they are managing to save - thanks for the replies

@luckygreeneyes surely the stamp duty will be calculated as a second home ownership, so 26k?

@coldrainagain I assumed as they were taking the cash towards this property they would no longer have any ‘ownership’ of the inherited house

@iwannaseeyoudance
Did your dd find a solution?

I think the only way to avoid the SDLT is for her boyf to buy the property alone her live there and then her come into the mortgage later. But I don’t know if this has SD implications

If the children have rental income they should be declaring this on a tax return annually

You should then be charging them whatever rent you want to live at home

Presumably you have the correct paperwork filed with hmrc that the property is split 80:10:10