Help calculating stamp duty for remaining share of shared ownership flat?

WLITC

Can someone try and assist me with calculating what I will need to pay in stamp duty when I purchase the remaining share of my shared ownership flat. I bought a 40% share in 2019, valued at £130k. I didn’t pay stamp duty at the time as a first time buyer and possibly below the threshold. I’m now about to buy the remaining 60%, with the 60% share currently valued at £174k (the full value of the flat was recently valued at £290k).  On those figures and with me staircasing to 100% in this transaction, is someone able to explain what I will need to pay in stamp duty on completion of the transaction? Btw, just in case it makes a difference, the flat is in London. 

SDLT_Geek

WLITC said:

Can someone try and assist me with calculating what I will need to pay in stamp duty when I purchase the remaining share of my shared ownership flat. I bought a 40% share in 2019, valued at £130k. I didn’t pay stamp duty at the time as a first time buyer and possibly below the threshold. I’m now about to buy the remaining 60%, with the 60% share currently valued at £174k (the full value of the flat was recently valued at £290k).  On those figures and with me staircasing to 100% in this transaction, is someone able to explain what I will need to pay in stamp duty on completion of the transaction? Btw, just in case it makes a difference, the flat is in London. 

The total payments you have made will be under £250,000 so I would not expect any stamp duty land tax to be payable.

silvercar

SDLT_Geek said:

WLITC said:

Can someone try and assist me with calculating what I will need to pay in stamp duty when I purchase the remaining share of my shared ownership flat. I bought a 40% share in 2019, valued at £130k. I didn’t pay stamp duty at the time as a first time buyer and possibly below the threshold. I’m now about to buy the remaining 60%, with the 60% share currently valued at £174k (the full value of the flat was recently valued at £290k).  On those figures and with me staircasing to 100% in this transaction, is someone able to explain what I will need to pay in stamp duty on completion of the transaction? Btw, just in case it makes a difference, the flat is in London. 

The total payments you have made will be under £250,000 so I would not expect any stamp duty land tax to be payable.

130+174=304. So over the 250 threshold. 

MWT

WLITC said:

Can someone try and assist me with calculating what I will need to pay in stamp duty when I purchase the remaining share of my shared ownership flat. I bought a 40% share in 2019, valued at £130k. I didn’t pay stamp duty at the time as a first time buyer and possibly below the threshold.

Are you sure you didn't make a full market value election at the time?

SDLT_Geek

silvercar said:

SDLT_Geek said:

WLITC said:

Can someone try and assist me with calculating what I will need to pay in stamp duty when I purchase the remaining share of my shared ownership flat. I bought a 40% share in 2019, valued at £130k. I didn’t pay stamp duty at the time as a first time buyer and possibly below the threshold. I’m now about to buy the remaining 60%, with the 60% share currently valued at £174k (the full value of the flat was recently valued at £290k).  On those figures and with me staircasing to 100% in this transaction, is someone able to explain what I will need to pay in stamp duty on completion of the transaction? Btw, just in case it makes a difference, the flat is in London. 

The total payments you have made will be under £250,000 so I would not expect any stamp duty land tax to be payable.

130+174=304. So over the 250 threshold. 

Whoops, I misunderstood the figures.  So the steps to calculate the SDLT on the £174,000 staircasing out are as follows.

1.  Work out the SDLT at today's rates on the total payments.  The SDLT now on £304,000 would be £2,700.

2.  Take a fraction of that tax.  The fraction is £174,000 / £304,000.  That gives £1,545.

So the tax on staircasing out is £1,545.

It seems to me that you could have chosen to have paid SDLT in "one go" in 2019.  As a first time buyer, on a then value of £325,000, it would have cost £1,250.  Perhaps you remember being offered that alternative at the time.  Not a bad decision to defer payment of SDLT perhaps, as you have had use of the £1,250 for the last four years.

MWT

SDLT_Geek said:

It seems to me that you could have chosen to have paid SDLT in "one go" in 2019.  As a first time buyer, on a then value of £325,000, it would have cost £1,250.  Perhaps you remember being offered that alternative at the time.  Not a bad decision to defer payment of SDLT perhaps, as you have had use of the £1,250 for the last four years.

Fair point, back in 2019 the market value would have been over the first time buyer allowance, and I'm sure there were other uses for £1,250 back then.