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Shared ownership - Land Tax issue
kerry.anne1988
Posts: 1 Newbie
Hello,
We recently staircased to 100% and paiD £1245 for land tax. we have now recieved a bill from HMRC for an additional £1055.
i'm a bit confused as to why as both by solicitor and I calculated the tax payable as £1245.
This was based on the following:
we purchased a 50% share share of our home in 2013 for £110,000.
We then further purchased the other 50% this year (2015)in May for £130,000 (big promotion made this possible).
we based the land tax on the consideration £240,000, as this is the total we have paid for the two transactions, as they are considered linked. this would make the land tax payable at 2% WHICH IS £2300.
we then proportioned this as we purchased the first share before 2014 and the second purchase included the freehold, so applied the calculation [FONT="]£130,000.00 over £240,000.00 x £2,300.00 = £1,245.00[/FONT].
is this correct as i now have a bill saying i should have pad the full £2300, which i beleive is wrong.
the way im reading the guidance notes on the HMRC website seems to confirm im right, but is there any exper out there that could confirm, before i spend a weekend worring bout finding the extra cash.
thank you in advance.
Kerry
We recently staircased to 100% and paiD £1245 for land tax. we have now recieved a bill from HMRC for an additional £1055.
i'm a bit confused as to why as both by solicitor and I calculated the tax payable as £1245.
This was based on the following:
we purchased a 50% share share of our home in 2013 for £110,000.
We then further purchased the other 50% this year (2015)in May for £130,000 (big promotion made this possible).
we based the land tax on the consideration £240,000, as this is the total we have paid for the two transactions, as they are considered linked. this would make the land tax payable at 2% WHICH IS £2300.
we then proportioned this as we purchased the first share before 2014 and the second purchase included the freehold, so applied the calculation [FONT="]£130,000.00 over £240,000.00 x £2,300.00 = £1,245.00[/FONT].
is this correct as i now have a bill saying i should have pad the full £2300, which i beleive is wrong.
the way im reading the guidance notes on the HMRC website seems to confirm im right, but is there any exper out there that could confirm, before i spend a weekend worring bout finding the extra cash.
thank you in advance.
Kerry
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