SDLT Shared Ownership How Much?

Scott.reid24

Hi everyone we have just received our report back from our solicitors but there's a few questions on there which we don't quite understand. But as it's the Xmas period they are now shut till the 3rd of Jan so it's a bit of a wait to ask them any questions.

The main question we wanted to ask today is about SDLT as we have been told that we have to pay £2300.
We are currently buying a 35% share for a £240,000 house and as we are only buying £84000 of it, so would this be correct? As it's seems a bit and I have also been told about staircasing?

Any help would be most appreciated.

Regards Scott

Caz3121

information on SDLT for shared ownership

https://www.gov.uk/stamp-duty-land-tax/shared-ownership-property

booksurr

read the post above. Surprised you have not researched this already given it is you who have the choice between a market value election or paying only when you staircase. That is a decision you make at the time of purchase and once made you cannot alter it, so the time to find out what you are doing is NOW

market value election:
market value price 240k
nil rate threshold 125k
SDLT payable 240 - 125 = 115 x 2% = £2,300

staircase election:
35% purchased at chargeable consideration of 84k
nil rate threshold 125k
no tax due (yet!)

make your choice... if you staircase you gamble that if / when you increase your share above 80% then the amount you'd pay at that time will be less than £2,300 (history suggests it won't)