SDLT Shared Ownership Query

BobbyRobert

I am hoping someone might be able to help me with the following query;

In 2006 myself and my Sister bought a 70% share in a property and opted not to pay stamp duty at the time of purchase- 70% £164,500, total vale £235,000

I am now in the process of buying my sisters half of the 70% for £111,000

I would like to know what liability of stamp duty there is from the initial 70% share purchase and any added liability there might be from buying my sisters equity

Current market value of the property is £486,000

I would like to pay any current outstanding SDLT during this transaction with my sister

Any help would be much appreciated!

Comms69

BobbyRobert wrote: »

I am hoping someone might be able to help me with the following query;

In 2006 myself and my Sister bought a 70% share in a property and opted not to pay stamp duty at the time of purchase- 70% £164,500, total vale £235,000

I am now in the process of buying my sisters half of the 70% for £111,000

I would like to know what liability of stamp duty there is from the initial 70% share purchase and any added liability there might be from buying my sisters equity

Current market value of the property is £486,000

I would like to pay any current outstanding SDLT during this transaction with my sister

Any help would be much appreciated!

You don't 'opt-out' of tax....

BobbyRobert

Perhaps 'deferred' the payment of SDLT at the time of purchase is a more accurate account

Comms69

BobbyRobert wrote: »

Perhaps 'deferred' the payment of SDLT at the time of purchase is a more accurate account

So you haven't paid it for 13 years? I just wonder how much interest has been accrued in that time?

SDLT_Geek

In 2006 SDLT on a price of £164,500 would have been at a flat 1%, that is £1,645.

I wonder if what you mean is that you elected to pay only £1,645 rather than electing to pay SDLT "in one go" to cover future staircasing? That election would have meant paying SDLT on £235,000. That would still have been in the 1% band, so would have meant SDLT of £2,350 in 2006.

If you have no other property interests so that standard rates of SDLT apply on the acquisition from your sister, then there is no SDLT on £111,000, though a land transaction return is needed.

If you staircase to over 80% then there is further SDLT. Because your lease was granted before 12 March 2008 you may well need to pay extra SDLT on the 2006 acquisition as well as on the staircasing transaction. The HMRC guidance on this is not very clear, but can be found here: https://www.gov.uk/guidance/sdlt-shared-ownership-property