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    • ray808
    • By ray808 7th Feb 18, 3:02 PM
    • 2Posts
    • 0Thanks
    ray808
    Stamp duty / shared ownership
    • #1
    • 7th Feb 18, 3:02 PM
    Stamp duty / shared ownership 7th Feb 18 at 3:02 PM
    Could anyone help me with this please?
    I have tried to work it out from the government website but to no avail.
    I bought the first 50% share of a shared ownership house from someone in December 2016 for 66k.
    I paid no stamp duty at this time.
    I am now buying the other 50% from the housing association for 60k.
    The solicitor has been rather vague, but has suggested that the stamp duty will be 2780.
    This seemingly rather large amount came as a big surprise.
    Can anyone shed light on this?

    Thanks
Page 1
    • 00ec25
    • By 00ec25 7th Feb 18, 6:53 PM
    • 6,494 Posts
    • 6,030 Thanks
    00ec25
    • #2
    • 7th Feb 18, 6:53 PM
    • #2
    • 7th Feb 18, 6:53 PM
    Could anyone help me with this please?
    I have tried to work it out from the government website but to no avail.
    I bought the first 50% share of a shared ownership house from someone in December 2016 for 66k.
    I paid no stamp duty at this time.
    I am now buying the other 50% from the housing association for 60k.
    The solicitor has been rather vague, but has suggested that the stamp duty will be 2780.
    This seemingly rather large amount came as a big surprise.
    Can anyone shed light on this?

    Thanks
    Originally posted by ray808
    sack your solicitor and find one who is competent

    on the face of what you say there is no way you will pay any SDLT at all with payments to date of 60k + 60k

    you did not make a market value election when you purchased the first 50%, therefore (in simple terms) your exposure to paying SDLT is based on the cumulative amount paid for each transaction. You have 2 transactions

    1. 50% purchased for 60k.
    Zero rate SDLT threshold in 2016 was 125k so no SDLT due on that payment

    2. purchasing the remaining 50% for a further 60k. Total spend to date 120k.
    Zero rate SDLT threshold in 2018 is 125k so no SDLT due on that cumulative either.

    https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

    https://www.gov.uk/guidance/sdlt-shared-ownership-property
    • ray808
    • By ray808 8th Feb 18, 3:32 PM
    • 2 Posts
    • 0 Thanks
    ray808
    • #3
    • 8th Feb 18, 3:32 PM
    • #3
    • 8th Feb 18, 3:32 PM
    Thanks for your answer, it is what my thoughts are on the subject.

    The thing that worries me is reading through all of the HMRC website, it does mention about 'lease premiums'.
    That section greatly confuses me.

    If anyone has any knowledge of that bit, I would appreciate it.

    Thanks
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