Stamp Duty & Shared Ownership

hanrutmoe

I am utterly confused about SDLT on Shared Ownership (leasehold).

Until recently I was under the impression that as long as my share was under £125,000 I did not need to pay this at all.

Now, a solicitor and a shared ownership company have told me that if my rent based on the unpurchased share is more than £4,200 per year I will have to pay a small amount of duty on the rent as well, and this applies even if the value of the home is below £125,000. My rent *is* above this.

"You have the option of paying stamp duty on either the share you are buying or the full value of the property."

However I can't find ANY official information on this. How do they calculate this "small amount of duty"? And I assume the rent they're referring to is the rent of the property, and not the ground rent?

I have asked the solicitor who mentioned it but they're taking far too long to reply (won't be hiring them then, I guess!)

Thanks

hanrutmoe

booksurr wrote: »

never ceases to amaze me how people can find a forum like this, work out how to post on it, yet are unable to operate google

read the first result http://lmgtfy.com/?q=sdlt+on+shared+ownership

2 options:
1. market value election: pay SDLT at time of purchase on the full 100% market price at the time of purchase. Never pay SDLT again if you subsequently staircase up from your initial share
or
2. pay in stages: pay SDLT on the initial purchase price if it is more than 125k and then pay further SDLT once the share is >80%

SDLT on rent is related to the market value election on a property where it is leasehold only and there is no right to have a share of the freehold OR there is a high annual rent where you choose the pay in stages option
read the link

Never ceases to amaze me how people can't READ. I CLEARLY stated that "However I can't find ANY official information on this". This means I've spent the last 2 hours googling to no avail.

Also google results are based on stored data about you. Your first result will not be everyone else's. Take your rude attitude elsewhere.

hanrutmoe

booksurr wrote: »

1. Type the following into google: Stamp duty and shared ownership
2. look for the .gov website result
3. read
4. ask about what you can't understand rather than what you haven't read yet

I already *did*.

How do they calculate this "small amount of duty"? And I assume the rent they're referring to is the rent of the property, and not the ground rent?

Your answer does not help at all, nor does the gov website (which for all your useless assumptions, I have spent the last 2 hours reading). I have been round in circles on there.

I can't understand why anyone would chose to pay the full SDLT when they can pay in stages, much less when the share is less than £125,000 therefore not even eligible for SDLT.

kimbyanne

We purchased our S/O house last year, we did not have to pay any stamp duty as our share is below £125k. When we purchase the remaining percentage, then we will pay stamp duty as it will be above £125k.

However, our rent is not near £4,200 a year, its only about £1.5k as we purchased a large percentage.

hanrutmoe

kimbyanne wrote: »

We purchased our S/O house last year, we did not have to pay any stamp duty as our share is below £125k. When we purchase the remaining percentage, then we will pay stamp duty as it will be above £125k.

However, our rent is not near £4,200 a year, its only about £1.5k as we purchased a large percentage.

Thanks Kimbyanne.

I contacted the GOV helpline in the end, they confirmed I wouldn't pay SDLT unless I chose to, and explained the reason why I'd want to do this (so, if I planned to buy the rest of the property and were concerned that the SDLT would have gone up by that point).

They were also able to help with the potential tax payable on the rent. Even though my rent is above £4200, it's worked out in relation to the cost of my property, and thus does not require any tax payments either.

Pretty relieved as one solicitor today had quoted me as needing to pay £5750 in stamp duty (I had told them I was shared ownership).