Stamp Duty: staircasing to 100% with a buy-to-let mortgage

NickM79

Hi,


I rang the HMRC Stamp Duty helpline and they were not able to assist me on the specifics of how I should calculate the Stamp Duty payable in my particular situation.


I currently own 50% of a Shared Ownership apartment, having purchased 5 years ago. At the time I paid Stamp Duty based on two components: on the equity purchased (that kept me within the 1% bracket) plus a smaller element that was based on the lease (NPV).


I now aim to staircase to 100%.


I have spoken with HMRC and have confidence in the Stamp Duty payable for a residential mortgage, but since I'm planning to own 100% I am also looking at buy-to-let mortgages (and the Housing Association have no issue here).


The calculations for Stamp Duty for Buy-To-Let properties are completely different and NOWHERE can I find any assistance on how to calculate the Stamp Duty payable when overlaying this on Shared Ownership (and staircasing).


My scenario:
Staircasing from 50% - 100%
Stamp Duty paid on the first 50% based on 50% equity and 50% lease (NPV)
Buy To Lent Mortgage
First Time Buyer and confirm this is the only UK residence (I will be living abroad in rented accommodation)


The think the final point means Buy-To-Let tax slabs are on the old basis (0%/2%/5%) not the new basis (3%/5%/8%).


Any help would be much appreciated! I am at a loss.


Thanks!!

Lokolo

Stamp-duty for BTL isn't different to residential. It is in fact stamp duty on additional homes.

Are you purchasing an additional property as well as staircasing to 100% ownership?

00ec25

you are on completely the wrong track

the type of mortgage you have has nothing to do with how much SDLT you pay

if you are certain (really?) that you paid SDLT only the initial 50% you bought, ie. you did NOT make a market value election, and instead you elected to pay SDLY on staircasing, then you need to read the guide for SDLT on staircasing to 100%, example 2 covers your situation (assuming you purchased the first 50% after March 2008 (did you?) then you can ignore the "additional tax" shown in that example.)
https://www.gov.uk/guidance/sdlt-shared-ownership-property

you might also find this version easier to follow:
https://www.gov.uk/stamp-duty-land-tax/shared-ownership-property

your calculation will simply be the cost of the 50% to get you to 100% apportioned as per the example