Stamp Duty on Shared Ownership

ironman1

Confirmed by HMRC we only pay 1% of the £110,000 we are now purchasing. Thank you

Tjrw1985

No problem.

I thought it was that.

holly_hobby

If you hadn't exercised the MVE election, it'll be 1% on the 110k as TJ has already discussed.

Hope this helps

Holly x

PS - sorry crossed with Ironman's confirmation post ... but at least we're all saying the same thang !

dumpallhere

See also SDLT on staircase transactions - further examples

Pretty clear IMO if you opted to pay SDLT in stages when purchasing the 50% share intially - just as HMRC has conformed to you.

kingstreet

Sorry. My understanding was incorrect then.

I read it that you pay 1% of the full price when you make your initial purchase under MVE, then paid nothing if you staircase later, or you pay nothing and pay 1% of the full staircase value when you eventually do that.

holly_hobby

Explaining MVE to the OP was really beneficial Kings., and it can certainly be confusing ! ( I do sometimes wonder if they deliberately publish this way just for devilment !!)

Together we got there in the end, and thats whats important !

Holly xx

ironman1

No problem being wrong on this matter. Two different solicitors (charging 900 quid fees) are still claiming Il owe SD on the full amount!

The thing is a £1000 difference is quite alot so you would think they would have a clue

ironman1

Legal Fees for acting on Purchase:- 405.00

Preparation and sending of Bank Transfer Fee( per transfer ) £35.00

Legal Fee Charges:- £435.00

Disbursements:-
VAT on our charges:- £86.00

Land Registration Fee £70.00

Local Authority Search £182.00

Land Registry Search Fee £7.00

Bankruptcy Search Fee £2.00

Total Disbursements:- £360.00

Total £805.00


That is the breakdown of the quote given by the solicitor less the £1,100 SD fee.Does that look ok to you? It seems legit but considering they messed up the SD part I was worried they might be taking me for a ride with other costs....

Cheers!

lindsaygalaxy

As someone that has been looking at/ considering SO for several years (though nothing here suitable has come up I wouldn't buy say 70 or 80%) I would stick at the 50% as it is more appealing to a buyer. Also, I would consider how much on the open market (not the SO valuation) if you buy the other share.

amnblog

This system like many tax laws is unecessarily complex and unfair.

if I was buying at £205,000 on the open market today I would be pretty cheesed off to hear that it is possible to acquire a property at the same value and pay £1,095 rather than the £2,050 I was being stung for.

Good luck to you though Ironman.