Stamp Duty and Shared Ownership

denial2010

Hello,

Hoping someone could help! I'm bashing my head against the screen trying to work out whether I need to pay stamp duty and reading other threads on the topic and the HMRC website aren't helping!

Bit of background. I brought a 50% share in a house in June 2010. £65,000 of £130,000. I did not pay any stamp duty as it was below the threshold. I was also a first time buyer at the time and I believe the threshold was raised to £250,000?

Now moving on 3 and half years to today and I'm looking to purchase the remaining £65,000. I'm yet to have the house valued, but I believe it will come in at the original price of £130,000. My neighbour had his valued at that recently as he is selling and the houses are identical.

So if the house is valued at £130,000, do I need to pay any stamp duty? Or is it 1% of the whole amount (so £1,300) or just half of that seeing as the first time round it wasn't "eligible"?

So confused!

kingstreet

See the HMRC site and establish if your solicitor made a "market value election" at the time;-

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

denial2010

kingstreet wrote: »

See the HMRC site and establish if your solicitor made a "market value election" at the time;-

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

Aha! Think I get this now. Looking through the paperwork for it now... Shall have an answer in due course! I bleeding hope so... Seeing as it was below the £250k for first-time buyers. If not... I clearly employed an incompetent solicitor!

aaajaaayan

Hi, I am also in a same situation like the person above, I bought a flat in 2010 on a shared ownership, Flat is priced 280,000 and my share is 51%. I did not realize or made aware of different ways you can pay your SDLT for Shared ownership buyers. So I paid SDLT based on market value election-an one off payment, which they charged my at 3%. To be honest there is no way I am going to acquire 100% ever in my life. So I am thinking of selling my flat soon. Would I be able to get my SDLT. Should I pay more for which I never owned? Can you please help me out...

00ec25

aaajaaayan wrote: »

Hi, I am also in a same situation like the person above, I bought a flat in 2010 on a shared ownership, Flat is priced 280,000 and my share is 51%. I did not realize or made aware of different ways you can pay your SDLT for Shared ownership buyers. So I paid SDLT based on market value election-an one off payment, which they charged my at 3%. To be honest there is no way I am going to acquire 100% ever in my life. So I am thinking of selling my flat soon. Would I be able to get my SDLT. Should I pay more for which I never owned? Can you please help me out...

I think you are asking can you get a refund of the SDLT you paid - the answer is a resounding no.

if you are asking will you have to pay more SDLT if you buy more share (ie increase above 51%) then, on the info you provide, again the answer is no as it appears your solicitor processed it as a market value election

you will need to dig out the paperwork from your solicitor and go through it with a fine tooth comb because I will be amazed if the solicitor did not give you something at the time you paid for the 51% explaining how the SDLT had been handled and seeking your agreement to that fact .

if you do not like the situation you are now in then it is a matter between you and your solicitor. I'm sorry to say that you will probably lose that argument as (most) solicitors are pretty competent at covering their backs, especially when dealing with FTB whose knowledge is very limited