Stamp Duty - Shared ownership 100% - Not first time buyer

HOPEEE1234

Our lease was granted after 12 March 2008, and SDLT has been paid using the pay-as-you-go method (selected stages). Based on HMRC’s guidance and the relevant legislation, I do not believe our previous staircasing transactions should be treated as linked for SDLT purposes. My understanding is that SDLT only becomes chargeable on the staircasing transaction that takes ownership beyond 80%, and that the calculation is based on the total consideration paid for all shares to date, with SDLT applied proportionally to the final share.

For reference, our transaction history is as follows:

• Initial share: £150,000 on a property valued at £500,000 (SDLT paid: £500)

• Second share: £154,500 (30%) on a revised property value of £515,000 - (SDLT exempt)

• Third share: £103,000 (20%) on the same £515,000 valuation (SDLT exempt) 

• Final share (planned): £103,000 (20%) to complete 100% ownership (SDLT due - how much?) 

My understanding is that the SDLT due on the final staircasing step is calculated as follows:

Final  share bought (£103,000) ÷ total consideration paid to date (£510,500) × SDLT on full consideration (£15,525 because no first time buyer relief) = £3,132 SDLT due on final staircasing. 

This reflects HMRC’s proportional method, where the SDLT liability is based on the value of the final share relative to the total amount paid across all shares.

Anyone who had similar experiences or now the answer? 

Thank you all ☺️

SDLT_Geek

HOPEEE1234 said:

Our lease was granted after 12 March 2008, and SDLT has been paid using the pay-as-you-go method (selected stages). Based on HMRC’s guidance and the relevant legislation, I do not believe our previous staircasing transactions should be treated as linked for SDLT purposes. My understanding is that SDLT only becomes chargeable on the staircasing transaction that takes ownership beyond 80%, and that the calculation is based on the total consideration paid for all shares to date, with SDLT applied proportionally to the final share.

For reference, our transaction history is as follows:

• Initial share: £150,000 on a property valued at £500,000 (SDLT paid: £500)

• Second share: £154,500 (30%) on a revised property value of £515,000 - (SDLT exempt)

• Third share: £103,000 (20%) on the same £515,000 valuation (SDLT exempt) 

• Final share (planned): £103,000 (20%) to complete 100% ownership (SDLT due - how much?) 

My understanding is that the SDLT due on the final staircasing step is calculated as follows:

Final  share bought (£103,000) ÷ total consideration paid to date (£510,500) × SDLT on full consideration (£15,525 because no first time buyer relief) = £3,132 SDLT due on final staircasing. 

This reflects HMRC’s proportional method, where the SDLT liability is based on the value of the final share relative to the total amount paid across all shares.

Anyone who had similar experiences or now the answer? 

Thank you all ☺️

I have worked back through the maths and agree with you that SDLT of £3,132 will be due on final staircasing.

HOPEEE1234

@SDLT_Geek thank you so much for confirming. I assumed in the past it would be £15,525 due once you own more than 80% and that has stopped from stair-casing to 100% (due to savings). 

It’s good to hear that you have got to the same answer. Thank you for your time ☺️ can i ask if you have been through this experience yourself ? Also do you think £500 paid at the first share will be deductible of the £3,132? 

Thanks again! It’s much appreciated 

SDLT_Geek

HOPEEE1234 said:

@SDLT_Geek thank you so much for confirming. I assumed in the past it would be £15,525 due once you own more than 80% and that has stopped from stair-casing to 100% (due to savings). 

It’s good to hear that you have got to the same answer. Thank you for your time ☺️ can i ask if you have been through this experience yourself ? Also do you think £500 paid at the first share will be deductible of the £3,132? 

Thanks again! It’s much appreciated 

As my username suggests, I specialise in SDLT at work, so come across these calculations often.

No, there is no credit for the £500 already paid on the original acquisition.

HOPEEE1234

Makes sense. Thank you! This was really helpful