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Is stamp duty payable on a shared ownership home?

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  • Is stamp duty payable on a shared ownership home?

    I am buying a flat with my partner. I am a nonworker and we are purchasing under the new-build Homebuy scheme and are buying a 60% share at a cost of £169,000. We were hoping to complete around April. In the budget we heard it was no longer necessary to pay stamp duty until you staircase your share of a property up to 80%. I asked our solicitor to look into it and he has come back saying he spoke to HMRC and we do still have to pay it – apparently it is only exempt if the value of the share of the property is less than £125,000. As far as I know that has been the rule for sometime, but the new rule applies only to shared ownership and did not depend on the value being purchased. Is this correct?
    Clerkenwell Property | London Property

  • #2
    I think if your solicitor professionally advises this then you either have to accept their opinion - or prepare to file for negligence on their part.

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    • #3
      There was a quirk in the legal position before whereby the normal exemption from SDLT (new name for Stamp Duty) where the price did not exceed £125K (or £150K in some areas) did not apply to new leases (and new shared ownership involves a new lease) where the annual rent exceeded £600 pa and most SO leases would have a rent well over that figure.

      All the new rule does is get rid of that anomaly so if the price of the share being bought is no more than £125K (£150K is some areas) then no tax is payable.

      As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.
      RICHARD WEBSTERwww.rwco.co.uk
      As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

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