Stamp Duty Help on part ownership

Hollie6464

Hi,

Looking at purchasing a 50% share on a property of £280,000 so would be purchasing £140,000. Very confused over stamp duty. Aware the threshold is £250,000 and the property is over that but as the amount I am purchasing is under will it be applicable?? Just trying to find out if it is based on the property value or the amount we purchase. Any advice would be greatly appreciated :-)

martinsurrey

Hollie6464 wrote: »

Hi,

Looking at purchasing a 50% share on a property of £280,000 so would be purchasing £140,000. Very confused over stamp duty. Aware the threshold is £250,000 and the property is over that but as the amount I am purchasing is under will it be applicable?? Just trying to find out if it is based on the property value or the amount we purchase. Any advice would be greatly appreciated :-)

is it a shared equity sheme operated by one of these

a local housing authority
a housing association
a housing action trust
the Northern Ireland Housing Executive
the Commission for the New Towns
a development corporation

if it is you have a choice,

1) pay the stamp duty all now, so 3% of £280,000 = £8,400 and dont worry about stamp duty again, this is called a market value election

2) do it on a transaction basis. this is fairly complex, but in most cases can save SDLT. If you bought 50% you would initially pay SDLT of 1% on £140,000 so £1,400.

read here

http://www.hmrc.gov.uk/sdlt/calculate/shared-ownership.htm