Stamp duty when staircasing to 100%

verycleverusername

Hi. I have what is probably a simple question but whenever I search the government website or elsewhere, I find conflicting or needlessly over complicated info. I simply cannot figure this out based on the information and examples that the government provide.

I own 50% of a one bed flat that I bought as a first time buyer. It was worth £250k when I got the mortgage on the 50%. Next year I'd like to staircase to 100%. Based in a recent sale in the same building it looks like my flat is now worth £210k.

If I were to staircase to 100%, how much stamp duty would I owe? And how is it worked out?

ResourcesShared

Shared ownership is complicated, and stamp duty land tax (SDLT) is complicated. Put them together and it's not surprising you're struggling to understand your likely costs, and how it's worked out.

You may find this Shared Ownership Resources article helpful - Shared ownership stamp duty: staircasing. (One reader commented: "This is the first article I’ve ever found that actually explains clearly how stamp duty works for shared ownership".)

Of course, everyone's situation is different. Which is perhaps one of the reasons that you're finding 'conflicting or needlessly overcomplicated info". You could use this Shared Ownership Resources feature to understand the principles and calculations at play, and then call the HMRC Stamp Duty Helpline to confirm your own calculations. Their phone number is 0300 200 3510. More info about contacting HMRC for help with SDLT here.

Hope this helps!

verycleverusername

I've seen that link and it doesn't help, but thank you.

I've not seen anything anywhere that helps me to calculate the figure. I've spoken to both a broker and a solicitor and they don't know either.

Even just seeing a simple example of staircasing from 50% to 100% somewhere might help, but all the examples used online are convoluted and don't make sense.

I can't understand how this is the system we use.

JJG

That link explicitly shows an example of someone stair casing from 50% to 100%.

SDLT_Geek

https://forums.moneysavingexpert.com/discussion/6665427/stamp-duty-when-staircasing-to-100

People on here can help you if you provide a lot more information.

1. Is the property in England, so the relevant stamp duty is stamp duty land tax?
2. On what date did you buy the interest?
3. Was that for £125K?
4. Did you buy by taking the grant of a new lease from the social landlord, or did you buy a lease from an existing lessee?
5. Do you know whether an election was made, at the time the lease was taken, to pay the SDLT on the full market value at that stage?
6. You still live in the property and it is the only property you have an interest in?

Depending on what you say, there might be some follow up questions.