Stamp duty on simultaneous staircasing and resale (shared ownership)

booksurr

aries11w wrote: »

Apparently stamp duty is only liable when you own 80% of above.

evidently you chose option 2 when you first bought the property, a bit of research would have shown you how it works (or ask you solicitor to explain it)
https://www.gov.uk/sdlt-shared-ownership-property

There are 2 ways to pay:

1. making a one-off payment based on the total market value of the property. If the buyer decides to make a one-off payment up front this is known as making a ‘market value election’ for SDLT.

2. paying any SDLT due in stages. If the buyer chooses to pay SDLT in stages, then they pay anything that’s due on the initial purchase amount. But then they don’t have to make any further payments until they own more than an 80% share of the property.

aries11w

Hi Booksurr,

In doing my research I now know about the below 2 options - unfortunately our solicitor never gave us a choice of option 1 or 2 during our purchase so I didn't know this even existed! Our solicitor firm no longer exists which explains a lot.

After doing my own research we now know that given the choice, we could have picked 'market value election' and paid nothing because at the point of purchase there was no stamp duty payable for purchase under £250,000. Ah well.

Anxious_home_improver

I was fascinated to read this thread. We sold our shared ownership property in Feb 2013; we were not given any options on purchase that affected our options at resale, and our HA advised us very explicitly that our buyer could buy our 50% from us and the HA's 50% from the HA.

It was extremely distressing to find out from our solicitor (several months in) that this was not possible and we ended up paying £5600 unexpected SDLT on the remaining half.

Alisonken - did you get an answer in the end?

I wonder if the subsale relief could be applied for retrospectively.......:rotfl:

simondup

Hi,

I am in a similar situation, selling a shared ownership property.

I am wondering if anybody has managed to get "sub-sell" relief on the stair-casing transaction that happens at the same time as the transfer of ownership.

Thanks
Simon

awatto88

I'm going through the process of staircasing/selling 100% and am under the impression stmap duty shouldn't be payable if you can claim sub sale relief. Apparently it can get tricky, but the below websites might help give you an idea (I had to remove the "www." from the start of each one so you may need to add back in... as a new user, it won't let me post links

healys.com/2015/08/03/beware-the-complexities-of-shared-ownership/

gov.uk/government/uploads/system/uploads/attachment_data/file/390073/guidance-sdlt-pre-completion.pdf

walkermorris .co.uk/publications/real-estate-matters-autumn-2013/so-long-to-sub-sale-relief/

SDLT_Geek

For anyone else researching this later, SDLT subsale relief is not available where one staircases to 100% and simultaneously sells on. The "subject matter of the transaction" is not the same, so the relief is not available.

camsoft

SDLT_Geek wrote: »

For anyone else researching this later, SDLT subsale relief is not available where one staircases to 100% and simultaneously sells on. The "subject matter of the transaction" is not the same, so the relief is not available.

Can you clarify more on this, I've just been told by a solicitor which specialises in SO that it is possible.

They told me:

Staircase simultaneously with a sale of 100% and then submit an SDLT application in which a claim for subsale relief is made.

Can you cite your reference as I want to go back to my solicitor and ask them if they are sure as I don't want a nasty surprise.

SDLT_Geek

Finance Act 2003 / Schedule 2A / para 1(2).

camsoft

SDLT_Geek wrote: »

Finance Act 2003 / Schedule 2A / para 1(2).

Thanks for this. I'm unable to find a reference to Schedule 2A in that act. Here's is Schedule 2:

https://www.legislation.gov.uk/ukpga/2003/14/schedule/2

00ec25

camsoft wrote: »

Thanks for this. I'm unable to find a reference to Schedule 2A in that act. Here's is Schedule 2:

https://www.legislation.gov.uk/ukpga/2003/14/schedule/2

at the top of that page is a section in pink stating changes to legislation are not yet fully reflected in the version you are looking at

if you open that dialogue box (view outstanding changes) and then scroll down to the SDLT section you will find the links you need to get you to here:

https://www.legislation.gov.uk/ukpga/2013/29/schedule/39/paragraph/3