HA - less than 80% share, what about the stamp duty?

Tygermoth

Hi all,

We are in the process of purchasing a HA home at a %50 share. During the budget Mr Darling stated that stamp duty was to be waived for anyone on a part ownership where they owned less than %80.

However both the HA and the sols have not been able to find any 'actual' details of this and I myself have trawled Gov.org and the tax websites and cant find any thing concrete.

Could someone point me in the right direction? as the sols a making mutterings that we will have to pay the duty.

Kind regards

Tyger

baileysbattlebus

http://www.hmrc.gov.uk/budget2007/bn23.htm

is this what you were after?

Richard_Webster

http://www.hmrc.gov.uk/budget2007/bn23.htm

is this what you were after?

I'm not sure this is the right point. Have a look at page 139 of http://www.hmrc.gov.uk/budget2008/master-notes.pdf
where the previous rule that the £125,000 threshold for 1% SDLT did not apply where the annual rent exceeded £600 has not been removed for residential properties. This used to hit shared ownership purchases. Assuming the 50% share is worth no more than £125K then there will be no SDLT.

Helga14

It may be worth thinking about paying stamp duty on the full market value when you buy the property, if you think you will want to buy it all or over 80% in the future. My flat has gone over the £250k value in the 18 months I've owned it. Luckily I paid the stamp duty initially of 1% on the full market value otherwise I would have had to pay 3% now i'm buying a bit more to take me over 80% ownership.