Shared ownership stamp duty for staricasing

michaelfayek · 18 February at 11:38AM

Hello,

I am new into this but I will try to be brief

I read a previous thread but it was closed so I could not reply back.

From reading , I understand these are the info you will need at the moment.

I am considering staricasing and trying to figure out the cost of stump duty. Here are the facts that I know.

- property build 2013 in England.

- I bought the property November 2022

,- I was first time buyer at the time of buying

- I bought the property from someone that was granted the first lease. ( Resale )

- I do not think I paid any stamp duty at the time and I do not recall being asked or advised to defer the stamp duty.

- property was valued 300k @ and my share is 35% ( 105k) at the time of purchase.

I do not have an exact valuation currently but from my understanding it will be about 325k
I am considering 100% staricasing .
Will I be treated as first time ( my status at the initial purchase ) when I staircase or will be treated as house move?

Please help me understand this a bit better before I start the process so I can my finance .

Please let me know if you need any further info you might require to personalised your roemies. Thank you in advance

SDLT_Geek · 18 February at 7:55PM

These short points should help.

You are not now a first time buyer.
You did not have the ability to make a market value election when you bought the 35% share in 2022, as it was a resale property.
If you now staircase to 100%, paying say £211,000, the SDLT will likely be payable at standard rates, so on £211K that is £1,720.
There is no need to work out the complicated "linking" calculations, as your staircasing transaction is not a "linked transaction" to either your purchase, nor to the 2013 (?) first lease.
If you can establish that the person who bought in 2013 elected to pay SDLT on the full market value at the time, then you will have no SDLT to pay on staircasing out.

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