Stamp duty question, Shared Ownership

stringer97

Gooday.

I've tried reading and researching and I just cannot rap my head around this. I just don't understand how to work out stamp duty
2017 October 25% share 91k. (380k value of property)
2019               35% share 133k(380k Value in property still)
2022               20% share 81k  (405k Value in property)
2024               20% share 81k (plz assume 405k in property value)

How do I work out stamp duty and what stamp duty will i have to pay upon staircasing 80% to 100. Please help me understand the process working this out. Because when i first was buying I remember seeing about 9k if i pay upfront. I just cannot work it out now even after all the reading up on it.

Thankyou to those taking the time to help me in advance. We are saving hard and I just need to get the approximate sums in my head.

dan

EssexHebridean

How did you pay the SDLT on the original 25% purchase? "Full market value election" or just on the 25% you bought then? 

stringer97

EssexHebridean said:

How did you pay the SDLT on the original 25% purchase? "Full market value election" or just on the 25% you bought then? 

I really don't know I cannot remember that far back. I remember choosing to pay a smaller amount in the region of around £400. but that's all I can't remember..

dan

SDLT_Geek

The property is in England, so SDLT is the right tax to look at?

I can see that if you had elected in 2017 to pay on market value the SDLT would have been £9,000 (the figure you mention).

I expect the SDLT you did pay was on the capitalised value of the rents (the "net present value").

I can do you a calculation if you confirm it is in England.

stringer97

Looking back on old emails. I paid SDLT £958. So i assume this was on the 25% as the full wack was far to much for me at the time.

SDLT_Geek

I make the SDLT £1,427 on the staircasing transaction.  Here is the calculation.

We add up the amounts paid for the lease and staircasing: £91K + £133K + £81K + £81K.  That gives a total of £386K.

We work out SDLT at today's rates on that £386K (assuming today's rates apply when you staircase over 80%).  That comes to £6,800.

But we take a fraction of the £6,800.  The fraction is £81K / £386K.  That gives SDLT of £1,427.

stringer97

SDLT_Geek said:

The property is in England, so SDLT is the right tax to look at?

I can see that if you had elected in 2017 to pay on market value the SDLT would have been £9,000 (the figure you mention).

I expect the SDLT you did pay was on the capitalised value of the rents (the "net present value").

I can do you a calculation if you confirm it is in England.

Yes its England. I would really appreciate that. Also i hope to understand how you worked it out. I read a lot of your old posts to others and kept getting confused, It will be interesting to see the figures you come up with.

SDLT Paid was £ 958 when purchasing first 25% share. I found the accounts sheet which I had in my Inbox all the way from 2017. 

SDLT_Geek

stringer97 said:

SDLT_Geek said:

The property is in England, so SDLT is the right tax to look at?

I can see that if you had elected in 2017 to pay on market value the SDLT would have been £9,000 (the figure you mention).

I expect the SDLT you did pay was on the capitalised value of the rents (the "net present value").

I can do you a calculation if you confirm it is in England.

Yes its England. I would really appreciate that. Also i hope to understand how you worked it out. I read a lot of your old posts to others and kept getting confused, It will be interesting to see the figures you come up with.

SDLT Paid was £ 958 when purchasing first 25% share. I found the accounts sheet which I had in my Inbox all the way from 2017. 

Our posts crossed.

stringer97

thankyou so much, the figures bring some relief to me and make a big difference to money I have available to reach 100%.

The one part I'm stuck on is this meaning: The fraction is £81K / £386K. I don't understand what your doing here to get SDLT of £1,427.

SDLT_Geek

stringer97 said:

thankyou so much, the figures bring some relief to me and make a big difference to money I have available to reach 100%.

The one part I'm stuck on is this meaning: The fraction is £81K / £386K. I don't understand what your doing here to get SDLT of £1,427.

I am taking £81 / £386 of £6,800.

The £81,000 represents the staircasing payment getting you over a 80% share.  The £386,000 is the total you have paid for the lease, including staircasing payments.

stringer97

SDLT_Geek said:

stringer97 said:

thankyou so much, the figures bring some relief to me and make a big difference to money I have available to reach 100%.

The one part I'm stuck on is this meaning: The fraction is £81K / £386K. I don't understand what your doing here to get SDLT of £1,427.

I am taking £81 / £386 of £6,800.

The £81,000 represents the staircasing payment getting you over a 80% share.  The £386,000 is the total you have paid for the lease, including staircasing payments.

Thankyou.
Just played with the calculator and worked out how you got the figure. 

If I could ask you one more question before we part ways, you already helped me out so much and taken a world of stress off my shoulder. Looking at these figures I see I'm better off the way I done it rather than pay the full price back in 2017. Why isn't this explained better to us when purchasing first time and why is it the so much less than the 9k originally quoted to me.  It really is a mind fk. 

Dan