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Stamp Duty on Shared Ownership
orangatan
Posts: 23 Forumite
Hi
Looking for help. We are in the process of buying 50% share of a property valued at £150k. Our share will be for £75k. Will we have to pay stamp duty on this?
Thanks in advance
Looking for help. We are in the process of buying 50% share of a property valued at £150k. Our share will be for £75k. Will we have to pay stamp duty on this?
Thanks in advance
0
Comments
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read the guide??Hi
Looking for help. We are in the process of buying 50% share of a property valued at £150k. Our share will be for £75k. Will we have to pay stamp duty on this?
Thanks in advance
https://www.gov.uk/guidance/sdlt-shared-ownership-property
you have a choice (ie. you take a punt!)...
a) make a "market value election" and pay SDLT now on the full 150k on the basis that in future when you "staircase up" beyond 50% ownership you will not have to pay any more SDLT
OR
b) elect to pay in stages. Pay no SDLT now as your 50% @ 75K is below the threshold and then only pay SDLT in the future when (if) your ownership goes above 80%. But when it does: a) how much will the house be worth then? b) what will the SDLT rate be then? c) what will the SDLT thresholds be then?
It is a punt!0 -
read the guide??
https://www.gov.uk/guidance/sdlt-shared-ownership-property
you have a choice (ie. you take a punt!)...
a) make a "market value election" and pay SDLT now on the full 150k on the basis that in future when you "staircase up" beyond 50% ownership you will not have to pay any more SDLT
OR
b) elect to pay in stages. Pay no SDLT now as your 50% @ 75K is below the threshold and then only pay SDLT in the future when (if) your ownership goes above 80%. But when it does: a) how much will the house be worth then? b) what will the SDLT rate be then? c) what will the SDLT thresholds be then?
It is a punt!
Many Thanks, Think I will take a punt to elect to pay in stages as solicitors keep adding costs on and its leaving us a bit short0 -
how short is short?????????Many Thanks, Think I will take a punt to elect to pay in stages as solicitors keep adding costs on and its leaving us a bit short
you do realise that on a market value election you would pay only £500 and would then never have to pay again
150 - 125 = 25 x 2% = £500
https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
(note this calculator does NOT work for staircase instalments)0
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