Staircasing to 100% during stamp duty holiday

Canicam

Hi all,

I bought my first property as shared ownership in 2016 with 40% equity and had the option to defer the stamp duty which I did. I staircased again to 70% in 2018 remaining below the 80% threshold to not pay stamp duty. 

After Rishi Sunak's announcement about the stamp duty holiday, I thought now would be a good time to staircase to 100%. However a friend of mine has been in touch with HMRC and they've informed him that if he was staircase to 100% he would be subject to Stamp duty. I've called HMRC 3 times now and they have been unable to confirm if staircasing is subject to stamp duty and have advised me to get in touch with their technical team in Nottingham - who only handle requests by post and have a 30 day turnaround ( side note, what century is this?). Additionally I've asked my solicitors and they've informed me that SDLT queries are not part of their remit and have offered to get an expert on retain for £230 plus vat. 

From one point of view I can understand that the lease was purchased in 2016 so any staircasing on that lease would be subject to the stamp duty. On the other hand if the stamp duty is applicable only on the transaction, then any stamp duty which would be applied to the transaction during the holiday would be foregone?

I was hoping to see if anyone would have any information about this or suggestions. 

Thanks in advance. 

SDLT_Geek

You need to add up the amounts paid to take the lease in 2016 and to staircase all the way up.  If they come to no more than £500,000 then I would expect no SDLT to be payable if you carry out the final staircasing during the holiday (by 31 March 2021).

Canicam

@SDLT_Geek
Thank you for the advice, I just wasn't sure whether or not starting the lease prior to the holiday would affect it. Thanks again. 

bradders1983

I am currently staircasing to 100%, almost near completion, and at no point during the process has my solicitor even mentioned that I am liable for Stamp Duty.

ecastiglioni

Canicam said:

Hi all,

I bought my first property as shared ownership in 2016 with 40% equity and had the option to defer the stamp duty which I did. I staircased again to 70% in 2018 remaining below the 80% threshold to not pay stamp duty. 

After Rishi Sunak's announcement about the stamp duty holiday, I thought now would be a good time to staircase to 100%. However a friend of mine has been in touch with HMRC and they've informed him that if he was staircase to 100% he would be subject to Stamp duty. I've called HMRC 3 times now and they have been unable to confirm if staircasing is subject to stamp duty and have advised me to get in touch with their technical team in Nottingham - who only handle requests by post and have a 30 day turnaround ( side note, what century is this?). Additionally I've asked my solicitors and they've informed me that SDLT queries are not part of their remit and have offered to get an expert on retain for £230 plus vat. 

From one point of view I can understand that the lease was purchased in 2016 so any staircasing on that lease would be subject to the stamp duty. On the other hand if the stamp duty is applicable only on the transaction, then any stamp duty which would be applied to the transaction during the holiday would be foregone?

I was hoping to see if anyone would have any information about this or suggestions. 

Thanks in advance. 

Hi @Canicam!
Would you please let me know if you did end up staircasing and what happened to Stamp Duty? Did you have to pay for it?
I'm kinda on the same situation, but I'm on 60% now and was hoping to get to 80%, but staircase the stamp duty to 100% (I paid a share of stamp duty when I first bought 35% of the flat in 2016).