Do you have to pay stamp duty for shared ownership

wizard3891

Me and my girlfriend are in the process of purchasing a 50% share of a house on a shared ownership scheme. The value of the house is £155000 so our share would be £77500. will we have to pay stamp duty as our purchase is only the £77500?

Also we have found out that the house comes under council tax band C What does this mean and is this one of the higher bands?

thanks for any help and advice.

grumbler

wizard3891 wrote:

Also we have found out that the house comes under council tax band C What does this mean and is this one of the higher bands?

Rather one of the lower. You can usually find exact amount of tax on the council website. Here is an example for some Leicestershire region:
http://www.charnwood.gov.uk/uploads/241791a1dc2c14090087165.pdf

rchddap1

When we bought our shared ownership house we were told that we could either pay the whole stamp duty for the whole house, or pay the portion related to our part of the house. But if we paid a portion, and then decided to buy another part of the house we would have to pay the relevant stamp duty on th future value.

My advice would be to talk to your Housing Association. They should be able to give you all the detail that you need.

wizard3891

I have seen on a few different websites that as the purchase price was only £77500, stamp duty would not apply.

Ill look into it

wizard3891

wizard3891 wrote:

I have seen on a few different websites that as the purchase price was only £77500, stamp duty would not apply.

Ill look into it

Found out for definate that no stamp duty will apply. :j

rchddap1

Congrats. In my case we bought our house before the threshold was raised, so we ended up having to pay it (mores the pity)

wizard3891

Hello again, right.

I have now been informed by our solicitors at the last minute that we will have to pay stamp duty as our annual rent will excede £600.

something which we did not budget for as the housing trust we are buying from told us we would not have to pay it

Does anyone know if this over £600 rent thing is true ?

cheers

unlucky_3

I never paid it for the property I was due to move into but only was buying 25%.What I will say is make sure all is ok with your solicitors as I have had problems with previous owners owing money and was not able to move in after all.Still paid my fees to everyone.