We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
The MSE Forum Team would like to wish you all a Merry Christmas. However, we know this time of year can be difficult for some. If you're struggling during the festive period, here's a list of organisations that might be able to help
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Has MSE helped you to save or reclaim money this year? Share your 2025 MoneySaving success stories!
Stamp duty when staircasing (shared ownership) - very confused!
ernesto_besto
Posts: 2 Newbie
I’m currently in discussions with HMRC about a possible stamp duty refund but I’m getting confused as to whether I have overpaid or not when I staircased to 100% on my shared ownership property. This is the situation:
In 2018, I bought a 50% share of a new-build, shared ownership flat that was valued at £475k. I opted to pay the SDLT in stages and because of first time buyer’s relief, I paid £0 in SDLT on that transaction.
In 2022, I bought the remaining 50% share and the flat was valued at £485k. I calculated the SDLT due as £7,073. This was based on:
1. Stamp duty on £480k ie the total amount spent on the property = £14k
2. figure from Step 1 apportioned 242.5k/480k ie 242.5/480 * 14k = £7,073.
But having spoken to someone at HMRC they suggested that I should’ve only calculated the SDLT due on the second transaction ie SDLT on £242,500 so £2,350.
The guidance on the HMRC website is very confusing and I don’t know which is the right figure and if I am entitled to an overpayment. Any help would be much appreciated!
Thanks
In 2018, I bought a 50% share of a new-build, shared ownership flat that was valued at £475k. I opted to pay the SDLT in stages and because of first time buyer’s relief, I paid £0 in SDLT on that transaction.
In 2022, I bought the remaining 50% share and the flat was valued at £485k. I calculated the SDLT due as £7,073. This was based on:
1. Stamp duty on £480k ie the total amount spent on the property = £14k
2. figure from Step 1 apportioned 242.5k/480k ie 242.5/480 * 14k = £7,073.
But having spoken to someone at HMRC they suggested that I should’ve only calculated the SDLT due on the second transaction ie SDLT on £242,500 so £2,350.
The guidance on the HMRC website is very confusing and I don’t know which is the right figure and if I am entitled to an overpayment. Any help would be much appreciated!
Thanks
0
Comments
-
Your calculation of £7,073 is correct.ernesto_besto said:I’m currently in discussions with HMRC about a possible stamp duty refund but I’m getting confused as to whether I have overpaid or not when I staircased to 100% on my shared ownership property. This is the situation:
In 2018, I bought a 50% share of a new-build, shared ownership flat that was valued at £475k. I opted to pay the SDLT in stages and because of first time buyer’s relief, I paid £0 in SDLT on that transaction.
In 2022, I bought the remaining 50% share and the flat was valued at £485k. I calculated the SDLT due as £7,073. This was based on:
1. Stamp duty on £480k ie the total amount spent on the property = £14k
2. figure from Step 1 apportioned 242.5k/480k ie 242.5/480 * 14k = £7,073.
But having spoken to someone at HMRC they suggested that I should’ve only calculated the SDLT due on the second transaction ie SDLT on £242,500 so £2,350.
The guidance on the HMRC website is very confusing and I don’t know which is the right figure and if I am entitled to an overpayment. Any help would be much appreciated!
Thanks
That is assuming your staircasing transaction completed before 23 September 2022 when the SDLT thresholds changed.0 -
Thanks for clarifying!0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.9K Banking & Borrowing
- 253.9K Reduce Debt & Boost Income
- 454.7K Spending & Discounts
- 246K Work, Benefits & Business
- 602.1K Mortgages, Homes & Bills
- 177.8K Life & Family
- 259.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards