Buyers premium on shared ownership properties

[ncoverdale@hastoe.co]

With many Shared-Ownership property sales the seller is prevented by the housing association's lease from increasing the sale price beyond that of the market value, as determined by an independent valuer. Unfortunately with demand outstripping supply its now common for sellers to require the buyer to pay them a separate "buyers premium", often £10-20,000, in addition to the asking price. Should this additonal premium be declared as part of the purchase price for Stamp Duty purposes? (unless the buyer can show that it is genuinely for "fixtures & fittings").
Many thanks indeed
Nick Coverdale
Hastoe Housing Association
ncoverdale@hastoe.com

[cranleys]

Your question...

Should this additonal premium be declared as part of the purchase price for Stamp Duty purposes? (unless the buyer can show that it is genuinely for "fixtures & fittings").

[A]
Yes it is considered part of the purchase price.

Colin Davison
Cranleys Chartered Accountants
Editor of Property Tax Secrets 2005
colin@cranleys.co.uk 01256-766655