Is stamp duty payable on the market value or discounted price

tbar11

AdrianC wrote: »

So £560k full value. As a FTB...

When you said...

...can I just clarify that you really meant you're paying 70% and getting a 30% discount, so £392k, or do you mean vice-versa, so £168k?

i am getting a 70% discount and and paying 30%. Market value is £560,000 and i would be paying £168,000. I think it is a great opportunity if it wasn't for the issue with the stamp duty which i would simply not be able to afford to pay!

AdrianC

And this isn't a 30% shared ownership thing?

tbar11

AdrianC wrote: »

And this isn't a 30% shared ownership thing?

No because i dont pay rent on the remaining on the share, although i do have the option to buy it in the future.

Maddy89

Hi tbarr11,

What was the outcome in the end?
Me and my boyfriend are looking at a DMS property and have been advised we would have to pay stamp duty for the full purchase price.
Thanks

cajef

Maddy89 wrote: »

Hi tbarr11,

What was the outcome in the end?

I doubt you will get an answer as the OP has not been back on these forums since last September and has only posted in this one thread in July.

Big_Red_Dog

If anyone does have recent eperience of stapm duty and DMS property purchase can they post here?
I'm hoping to purchase one soon, and the govt guidelines are vague at best.....

SmashedAvacado

The problems with these types of schemes is that the value of a 30% share in a whole house is rarely going to be 30% of the value of the whole house - it’s going to be less. But typically they are marketed for more.

Sachs

That's not strictly true. I deal with these properties fairly frequently in rural Devon albeit I've never heard of one like OPs where the discount his so huge and they can staircase.

Usually these will have a discount somewhere around 20 to 40% of the value and the discount is in perpetuity due to either or both a section 106 agreement or a covenant. There is no staircase option, it's to keep village living affordable in perpetuity.

The process is often that the seller pays for a valuation and then 30% is knocked off. Because that 30% is so set in stone I cannot see how HMRC could possibly say the value is anything but 70%.

emcat

I own a DMS property in London that I purchased in 2017. I purchased 41% and paid SDLT on the consideration paid for the 41%. I’m able to staircase and about to do so and trying to work out what the chargeable consideration will be given the increase in market value. But I will definitely have to pay SDLT on the share I am staircasing - my solicitor confirmed that.

Seems like all these DMS schemes are very different. I was going to sell the property but it was such a horrific process we’re scraping the coffers to staircase it to 100% and let it out or then sell it without the deed of restriction in place.