Shared Ownership Staircasing to 100% – Pre-2003 Lease, Resale, SDLT Linking Question

ls_100

Hi all,

I’m hoping for some guidance from those familiar with SDLT and shared ownership staircasing, as I’m getting conflicting interpretations.

Property & Lease Background:

• Property in England (London)
• Shared ownership house
• Original shared ownership lease granted: October 2001 (pre-SDLT era)
• Lease term: 125 years from 2001
• Original tenant purchased 50% in 2001
• Lease contains clause:

“STAMP DUTY is to be paid under section 97 of the Finance Act 1980 on the agreed Capital Value on the starting date (which is the market value for the purpose of that section)”

(This appears to relate to old Stamp Duty, not new SDLT.)

My Purchase:

• I bought the property as a shared ownership resale / assignment in June 2024
• I am not the original lessee
• Purchased 50% share for £230,000
• • Lease start date: 19/10/2001
  • Transaction NOT linked
  • First Time Buyer Relief claimed
  • SDLT paid: £0

Current Situation (2026):

• RICS valuation now: £500,000
• Considering staircasing to 100% in early 2026
• Remaining 50% to acquire ≈ £250,000

The Question:

Under HMRC manual SDLTM27065, it states that staircasing transactions are not linked if:

(b) the shared ownership lease has been assigned by the original lessee to a person unconnected with the original lessee.

As I am an assignee (resale buyer) and unconnected to the original lessee, my understanding is that this exception may apply.

If so, my final staircasing may be treated as a standalone SDLT transaction, meaning SDLT would be calculated only on the £250,000 final share (≈ £2,500 under standard rates), rather than being aggregated with the original £230,000 (which would push SDLT much higher, approx £7k+).

My concern / confusion:

• Does the fact the lease is pre-2003 and I am an assignee mean the SDLTM27065 exception applies?
• Does the old Stamp Duty clause in the lease affect modern SDLT treatment for a later assignee?
• Should the final staircasing be treated as standalone or linked?

I’ve asked my solicitor but they are taking time to reply, and I’d really appreciate any expert insight from those familiar with HMRC practice on pre-2003 shared ownership leases and assignment cases.

Many thanks in advance.

_Penny_Dreadful

https://forums.moneysavingexpert.com/discussion/6652905/shared-ownership-staircasing-to-100-pre-2003-lease-resale-sdlt-linking-question

I’m not an expert but I’d think it would be the SDLT rules of today rather than yesteryear that apply.

@SDLT_Geek is the forum’s expert in all things SDLT.

SDLT_Geek

https://forums.moneysavingexpert.com/discussion/6652905/shared-ownership-staircasing-to-100-pre-2003-lease-resale-sdlt-linking-question

It is clear to me that there is no question of your staircasing transaction being linked to an earlier transaction.

But seems to be better than that if, as appears to be the case from the provision in the 2001 lease which you quote (about the election under Finance Act 1980 section 97), an election was made for the old stamp duty to be paid on the full market value of the property in 2001. That should be evidenced by the value of the old wafer stamps impressed onto the 2001 lease.

If that is the case, then transitional provisions when SDLT was introduced in 2003 give the old section 97 election the same effect as a market value election under Finance Act 2003 / Schedule 9 / paragraph 4, so no further SDLT is payable on staircasing out.

You could refer your solicitor to the provisions of Finance Act 2003 / Schedule 19 / paragraph 7(2), cross referring to Finance Act 2003 / Schedule 9 / paragraph 4.