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Do u pay stamp duty on Shared Ownership?

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Comments

  • PoorDave
    PoorDave Posts: 952 Forumite
    500 Posts
    kebl0826 wrote:
    A good 30-40minute trawl of the inland revenue website and I can confirm that this is correct! The only way out is if you are in a disadvantaged area.

    Damn, I hate Gordon Brown - bl***y greedy grasping so-and-so. Looking forward to voting him out at the next election.

    Why would people not have to pay SD in this instance though? It seems like one of these "i'm all for taxes to pay for hospitals and schools etc, unless the taxes happen to apply to me, the i don't like it" arguments.

    Didn't Gordon Brown raise the lower level at which SD kicks in? Were you complaining then?

    The fairest way to deal with this would be that the total SD is set by the full purchase price, with the proportion of the duty being paid by the parties involved in the same split as their shares of the property itself.
    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery
  • Bargain_Rzl
    Bargain_Rzl Posts: 6,254 Forumite
    PoorDave,

    The OP has a valid question. The share (s)he is purchasing is worth less than the threshold, so it is quite reasonable to query whether or not SD is payable. It's certainly something I didn't know until I researched it when I got accepted for my SO flat.

    I'm sure if the SHARE that the OP is purchasing was over the threshold, the OP would know that SD would be payable regardless.
    :)Operation Get in Shape :)
    MURPHY'S NO MORE PIES CLUB MEMBER #124
  • kebl0826
    kebl0826 Posts: 23 Forumite
    PoorDave wrote:
    Why would people not have to pay SD in this instance though? It seems like one of these "i'm all for taxes to pay for hospitals and schools etc, unless the taxes happen to apply to me, the i don't like it" arguments.

    Didn't Gordon Brown raise the lower level at which SD kicks in? Were you complaining then?

    Raising it to £125k makes little difference to most people. See:

    http://money.guardian.co.uk/tax/inheritancetax/story/0,,1964457,00.html?gusrc=rss&feed=11
  • regularsaver1
    regularsaver1 Posts: 4,930 Forumite
    I thought it was if over £600 rent per year you will be charged. The solicitor should charge it as they can get in trouble I have heard

    I suppose if you contact the land registry to ask?
  • reverend
    reverend Posts: 37 Forumite
    Bargain Rzl's memory matches my experience.

    I bought a 40% share of a property worth £260,000 in total, and I paid stamp duty based on two figures:

    1) my share
    2) the average annual rent of the rent payable in the first 5 years.

    It was calculated here
  • PoorDave
    PoorDave Posts: 952 Forumite
    500 Posts
    kebl0826 wrote:
    Raising it to £125k makes little difference to most people. See:

    http://money.guardian.co.uk/tax/inheritancetax/story/0,,1964457,00.html?gusrc=rss&feed=11

    Would make all the difference in this case though surely?

    Then both the 100% and the proportion being purchased would be over the threshold.
    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery
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