Share Ownership Stamp Duty

kookee918

Hi there,
We are looking into staircasing/ selling back-to-back for our shared ownership property. It was bought in 2015 at 35% (£126000), market value at that time was £360k. For some reason, we thought this is under the limit and would not be required to pay Stamp Duty as First time buyer. Solicitor did not press on it and said there is an option for you to pay this thing called Stamp duty, but as he said optional I think we just didn't proceed... They did charge us for £50 for "Preparation of SDLT" so I believe we didn't pay the £253 since they said as optional, I can't find any details on that now.  Is there something I should do to pay back the £253, or anything else? 
And assuming we didn't pay, since we want to staircase it to 100% now (and then sell it before March for a bigger place), do we just calculate it base on 100% of the current market value (£370k)? 
Alternatively we can look at back-to-back selling which I believe we don't have to pay the stamp duty... 

Thank you.

YoungGentry

Yes you have to do a stamp duty calulation based on 100% value. 

Stamp duty holiday is valid so you are in luck!

izoomzoom

We bought 50% in 2006. Purchase was under SD threshold, so didn't pay anything. Staircasing to 100% now and conveyancer confirmed no SD liability, due to current holiday.

kookee918

@izoomzoom Really? Our solicitor quotation came back and they are telling us that our flat was bought in 2015 so it does not entitled to the stamp duty holiday, let me ask them again. Or do you mind sharing your contact? Thank you. 

annetheman

I spoke to my solicitor about something similar and you should be eligible for the stamp duty "holiday" now whilst the limit is £500,000 and your full market value today is less than that - I'd ask your solicitor to explain why they think you're not entitled.

I'm signing the new lease soon and have elected to pay stamp duty on today's full market value of £355,000 so I don't have to pay stamp duty when I staircase in the future. Before the threshold increase, I would've had to pay stamp duty if I were making a full value election but am eligible to take advantage of the holiday so will pay £0.

izoomzoom

kookee918 said:

@izoomzoom Really? Our solicitor quotation came back and they are telling us that our flat was bought in 2015 so it does not entitled to the stamp duty holiday, let me ask them again. Or do you mind sharing your contact? Thank you. 

I emailed the Conveyancer to ask our SD liability was. A day or two later, the SD holiday was announced and she then replied that she was pleased to confirmed no stamp duty due in respect of our property. I can PM you the solicitor name if that is possible?

Jpengall

Hi there, can you also send me the details please of your conveyancer as I am in the same position. Thanks 👍 

oldbikebloke

kookee918 said:

Hi there,
We are looking into staircasing/ selling back-to-back for our shared ownership property. It was bought in 2015 at 35% (£126000), market value at that time was £360k. For some reason, we thought this is under the limit and would not be required to pay Stamp Duty as First time buyer. Solicitor did not press on it and said there is an option for you to pay this thing called Stamp duty, but as he said optional I think we just didn't proceed... They did charge us for £50 for "Preparation of SDLT" so I believe we didn't pay the £253 since they said as optional, I can't find any details on that now.  Is there something I should do to pay back the £253, or anything else? 
And assuming we didn't pay, since we want to staircase it to 100% now (and then sell it before March for a bigger place), do we just calculate it base on 100% of the current market value (£370k)? 
Alternatively we can look at back-to-back selling which I believe we don't have to pay the stamp duty... 

Thank you.

FTB relief on purchases up to £500k was introduced wef 22 Nov 17  and for shared ownership purchasers subsequently staircasing it was later on backdated to the same date 22/11/17 https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers-guidance-note

In 2015 you paid £126,000 for an SO property. The numbers you quote do not make sense as there are only 2 options for SO:
a) at point of initial purchase you pay SDLT on the full value (360) , not the actual share you bought (126). Called the "market value election"
or
b) You elect for the "staircase method" and therefore must pay SDLT if the amount actually paid is > £125,000. You state you paid £126,000, so £1,000 over the threshold  https://www.gov.uk/guidance/sdlt-shared-ownership-property

You now state the solicitor charged £50 for "preparation". An SDLT return was certainly required even if £0 was paid, but in your case, it appears you did not formally make the market value election and therefore should have paid SDLT on the £1,00 in excess of the 125 threshold. In 2015 that would have meant £20 payable https://www.stampdutyrates.co.uk/historic-rates.html#:~:text=Stamp%20duty%20is%20now%20only,taxes%20were%20made%20during%202015.
Are you sure the "£50" was not in fact £20 SDLT + £30 "fee" ?

Please explain where you get the idea SDLT is £253????