Stamp Duty On Shared Ownership
Discussion
Please can someone help with the following
A friend purchased a house last year on a 50% shared ownership basis and paid £115,000 for their 50% share.
They now have a figure to purchase the remaining 50% at £132,500 (property prices are on the up where we live)
Two solicitors have been approached for a quote to handle the legal side of the transfer.
Solicitor 1 has stated the SDLT would be £3,250. Looks like they have just calculated the SDLT on a property price of £265,000
Solicitor 2 has stated SDLT would be £150. looks like they have calculated it as £132,500-£125,000 = £7,500 7,500 * 2% stamp = £150
Both can't be correct!
From reading this
https://www.gov.uk/stamp-duty-land-tax/shared-owne...
I thought it should be calculated by
115,000+132,500= £247,500, which means stamp duty of £2,450
Can anyone clarify?
A friend purchased a house last year on a 50% shared ownership basis and paid £115,000 for their 50% share.
They now have a figure to purchase the remaining 50% at £132,500 (property prices are on the up where we live)
Two solicitors have been approached for a quote to handle the legal side of the transfer.
Solicitor 1 has stated the SDLT would be £3,250. Looks like they have just calculated the SDLT on a property price of £265,000
Solicitor 2 has stated SDLT would be £150. looks like they have calculated it as £132,500-£125,000 = £7,500 7,500 * 2% stamp = £150
Both can't be correct!
From reading this
https://www.gov.uk/stamp-duty-land-tax/shared-owne...
I thought it should be calculated by
115,000+132,500= £247,500, which means stamp duty of £2,450
Can anyone clarify?
My understanding is:
If it was the intention on outset to purchase both elements a year apart then SDLT would be due on the total purchase price.
If it was not the intention on outset to purchase both elements a year apart but a change in circumstances has facilitated it then SDLT would only be due on the second tranche (as over the nil rate band).
Note the time between the purchases is not the relevant factor, the original intention is.
If it was the intention on outset to purchase both elements a year apart then SDLT would be due on the total purchase price.
If it was not the intention on outset to purchase both elements a year apart but a change in circumstances has facilitated it then SDLT would only be due on the second tranche (as over the nil rate band).
Note the time between the purchases is not the relevant factor, the original intention is.
Edited by PurpleMoonlight on Thursday 5th November 17:29
Assuming they did not pay any SDLT last year, this is how I work it out using the HMRC website as a guide
50% bought; share owned 50%; amount paid for share £115,000; total paid £115,000; SDLT due £0
50% bought; share owned 100%; amount paid for share £132,500; total price paid £247,500, SDLT due £2,450
£2,450 / £247,500 = £0.010 (rounded up)
£0.010 x £132,500 = £1,325 due
I may not be correct though!
50% bought; share owned 50%; amount paid for share £115,000; total paid £115,000; SDLT due £0
50% bought; share owned 100%; amount paid for share £132,500; total price paid £247,500, SDLT due £2,450
£2,450 / £247,500 = £0.010 (rounded up)
£0.010 x £132,500 = £1,325 due
I may not be correct though!
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