Stamp duty question when staircasing, Shared Ownership

Mido_2025

Hi All, thank you for this helpful thread and sorry to jump into this.

Can someone please help me to understand what I should pay for my staircasing:

2018 - Property value was £650,000; we bought 40% for £260,000. Stamp Duty was £3000, NPV was £1772
2021 - Property value was £625,000, Staircased to 70 % for £187500 on the additional 30%. No Stamp duty paid.
2025 - Property value is £625,000, we are looking for staircasing to 100% but cannot calculate the correct amount for the remaining stamp duty.

Can anyone help with this please?

SDLT_Geek

Mido_2025 said:

Hi All, thank you for this helpful thread and sorry to jump into this.

Can someone please help me to understand what I should pay for my staircasing:

2018 - Property value was £650,000; we bought 40% for £260,000. Stamp Duty was £3000, NPV was £1772
2021 - Property value was £625,000, Staircased to 70 % for £187500 on the additional 30%. No Stamp duty paid.
2025 - Property value is £625,000, we are looking for staircasing to 100% but cannot calculate the correct amount for the remaining stamp duty.

Can anyone help with this please?

Assuming that in 2018 you bought a property in England from the social provider, then I make the SDLT due on staircasing out £6,422.

This is the calculation.

Add up the payments made: £260,000 + £187,500 + £187,500 is £635,000.

Work out SDLT at today's rates on £635,000.  I used the calculator for that, it gives £21,750.

The SDLT is a fraction of the £21,750.

The fraction is £187,500 / £635,000.

That gives SDLT of £6,422.

Starry60

Hello. Hoping to piggy back on this thread. 

I’ve just completed 100% Staircasing. 

I originally bought a 50% share of a resale paying £122.500. I didn’t pay any stamp duty. I later staircased an additional 20% paying £89500 I’ve now bought 30% paying £120000. My solicitor says I’ve nothing to pay but from reading through all these threads I do. I just can’t work out how to calculate it. Can anyone explain or help me with the calculation? TIA 

SDLT_Geek

Starry60 said:

Hello. Hoping to piggy back on this thread. 

I’ve just completed 100% Staircasing. 

I originally bought a 50% share of a resale paying £122.500. I didn’t pay any stamp duty. I later staircased an additional 20% paying £89500 I’ve now bought 30% paying £120000. My solicitor says I’ve nothing to pay but from reading through all these threads I do. I just can’t work out how to calculate it. Can anyone explain or help me with the calculation? TIA 

You posted the same question here https://forums.moneysavingexpert.com/discussion/6609063/stamp-duty-help and I answered it.

smallworld12

Hi There,

Could I also piggy back on this question please?

I purchased 50% of my property in Sept 2018 - Market Value was £147500 / 50% share was £73750

Completed SDLT form through solicitor and advised I was exempt to paying any stamp duty due to being a first time buyer - didn't question this or ask any other questions (wasn't advised/ hadn't realised, I could have elected to pay at this time)

Fast forward 7 years and I'm currently in the process of staircasing out to 100% - Market value £215000  share purchase for remaining 50% is £107500.

Solicitors have made me aware there may or may not be stamp duty to pay (hadn't even thought about it) - they think around £1800, but they want to be sure before advising me so have yet to come back to me.

Having looked on the .gov website - my understanding is I'm still under the threshold for my new share so would still be exempt - however with exceeding 80%, would I pay stamp duty on the 20% at 2%?

I've spoken with the stamp helpline and I feels very open for interpretation and I'm really confused without fully understanding it all.

Any help or similar experiences would be greatly appreciated

Thank you in advance

SDLT_Geek

smallworld12 said:

Hi There,

Could I also piggy back on this question please?

I purchased 50% of my property in Sept 2018 - Market Value was £147500 / 50% share was £73750

Completed SDLT form through solicitor and advised I was exempt to paying any stamp duty due to being a first time buyer - didn't question this or ask any other questions (wasn't advised/ hadn't realised, I could have elected to pay at this time)

Fast forward 7 years and I'm currently in the process of staircasing out to 100% - Market value £215000  share purchase for remaining 50% is £107500.

Solicitors have made me aware there may or may not be stamp duty to pay (hadn't even thought about it) - they think around £1800, but they want to be sure before advising me so have yet to come back to me.

Having looked on the .gov website - my understanding is I'm still under the threshold for my new share so would still be exempt - however with exceeding 80%, would I pay stamp duty on the 20% at 2%?

I've spoken with the stamp helpline and I feels very open for interpretation and I'm really confused without fully understanding it all.

Any help or similar experiences would be greatly appreciated

Thank you in advance

Just to check a few facts first:

1.  The property is in England presumably, given that you refer to SDLT.

2.  When you bought in 2018, was it

(a)  from the social landlord who granted you a new lease or
(b)  was it from someone who had already taken a lease from the social landlord and assigned that lease to you?

3.  You are keeping the property, not doing a back to back sale?

smallworld12

Sorry, should have noted that from previous threads.

Yes in England

I was first person to live in the property, and pay Housing Association rent currently - I have a lease with them.

keeping the property

SDLT_Geek

smallworld12 said:

Sorry, should have noted that from previous threads.

Yes in England

I was first person to live in the property, and pay Housing Association rent currently - I have a lease with them.

keeping the property

I make the SDLT on staircasing out £667.

First I add the amounts you paid in linked transactions.  £73,750 + £107,500 is £181,250.

Then I work out the SDLT on £181,250.  At standard rates that is £1,125.

I then take a fraction of the £1,125.

The fraction is £107,500 / £181,250.  That gives the £667 payable on staircasing out.

smallworld12

SDLT_Geek said:

smallworld12 said:

Sorry, should have noted that from previous threads.

Yes in England

I was first person to live in the property, and pay Housing Association rent currently - I have a lease with them.

keeping the property

I make the SDLT on staircasing out £667.

First I add the amounts you paid in linked transactions.  £73,750 + £107,500 is £181,250.

Then I work out the SDLT on £181,250.  At standard rates that is £1,125.

I then take a fraction of the £1,125.

The fraction is £107,500 / £181,250.  That gives the £667 payable on staircasing out.

Thank you. That’s really helpful 

smallworld12

Sorry to come back on this one. 

Solicitor is stating the £1125 is payable. 

Are you able to expand on how you got to the £667 figure so I can go back and just challenge that in any way please