Stamp Duty Calculation Query

Lilstu

Hello,

I sold my shared ownership apartment 18 months ago but have concerns that I may have paid too much stamp duty when I was staircasing. 

I have tried working out the amount I should have paid but haven’t had much luck confirming if what was paid was indeed correct or too much. Can someone help me with this?

I’m reluctant to contact HMRC yet as on their website they say to speed things up, they provide refunds but can claim it back + interest if incorrect at a later date and I worry that might happen if I’m wrong.

I purchased the apartment in 2016 for 340K and purchased a 40% share which was 136,000 (I paid a nominal amount of £220 towards the stamp duty and deferred the rest)

In 2017 I staircased from 40% to 60% - market value 350,000

i staircased again in 2017 from 60% to 75% - market value 350,000.

i staircased again in December 2019 75% to 100% at a market value of 345,000.

when I did the final staircase, I paid a total of £4413. I’ve been helping a friend with his final staircase and it’s made me query whether I did pay too much SDLT at the time.

if anyone could help me with the above calculation, it would be very much appreciated and put my mind at rest!!

SDLT_Geek

Lilstu said:

Hello,

I sold my shared ownership apartment 18 months ago but have concerns that I may have paid too much stamp duty when I was staircasing. 

I have tried working out the amount I should have paid but haven’t had much luck confirming if what was paid was indeed correct or too much. Can someone help me with this?

I’m reluctant to contact HMRC yet as on their website they say to speed things up, they provide refunds but can claim it back + interest if incorrect at a later date and I worry that might happen if I’m wrong.

I purchased the apartment in 2016 for 340K and purchased a 40% share which was 136,000 (I paid a nominal amount of £220 towards the stamp duty and deferred the rest)

In 2017 I staircased from 40% to 60% - market value 350,000

i staircased again in 2017 from 60% to 75% - market value 350,000.

i staircased again in December 2019 75% to 100% at a market value of 345,000.

when I did the final staircase, I paid a total of £4413. I’ve been helping a friend with his final staircase and it’s made me query whether I did pay too much SDLT at the time.

if anyone could help me with the above calculation, it would be very much appreciated and put my mind at rest!!

I make the SDLT £4,398.

Are the amounts you paid:

40%. £136,000
20%.  £ 70,000
15%.  £ 52,500
25%.  £86,250?

So a total of £344,750?

If so, we work out SDLT on £344,750 at Dec 2019 rates.  I make that £17,580.

We take a fraction of this.  The fraction is £86,250 / £344,750.

That gives £4,398.