Stamp duty / shared ownership

ray808

Could anyone help me with this please?
I have tried to work it out from the government website but to no avail.
I bought the first 50% share of a shared ownership house from someone in December 2016 for £66k.
I paid no stamp duty at this time.
I am now buying the other 50% from the housing association for £60k.
The solicitor has been rather vague, but has suggested that the stamp duty will be £2780.
This seemingly rather large amount came as a big surprise.
Can anyone shed light on this?

Thanks

00ec25

ray808 wrote: »

Could anyone help me with this please?
I have tried to work it out from the government website but to no avail.
I bought the first 50% share of a shared ownership house from someone in December 2016 for £66k.
I paid no stamp duty at this time.
I am now buying the other 50% from the housing association for £60k.
The solicitor has been rather vague, but has suggested that the stamp duty will be £2780.
This seemingly rather large amount came as a big surprise.
Can anyone shed light on this?

Thanks

sack your solicitor and find one who is competent

on the face of what you say there is no way you will pay any SDLT at all with payments to date of 60k + 60k

you did not make a market value election when you purchased the first 50%, therefore (in simple terms) your exposure to paying SDLT is based on the cumulative amount paid for each transaction. You have 2 transactions

1. 50% purchased for 60k.
Zero rate SDLT threshold in 2016 was 125k so no SDLT due on that payment

2. purchasing the remaining 50% for a further 60k. Total spend to date 120k.
Zero rate SDLT threshold in 2018 is 125k so no SDLT due on that cumulative either.

https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

https://www.gov.uk/guidance/sdlt-shared-ownership-property

ray808

Thanks for your answer, it is what my thoughts are on the subject.

The thing that worries me is reading through all of the HMRC website, it does mention about 'lease premiums'.
That section greatly confuses me.

If anyone has any knowledge of that bit, I would appreciate it.

Thanks