stamp duty and shared ownership

[tom@athomas.demon.co]

Dear people, I hope someone can help.

I'm am just about to buy a 33% share in a shared ownership flat. My 33% share will be £57, 575 of a total flat cost of approx 165,00.

My question concerns what stamp duty (if any) I am liable to pay on my 33% share. From what I understand with shared ownership schemes you have the option to pay in 2 ways. As a one-off payment on the total cost of the property (i.e. 165,00) or in relation to the percentage(s) you buy now and in case of future staircasing.

If I take the latter course would I pay any stamp duty initially (as my percentage is below 60 k). And if I have to, is the tax still based on a 1% charge, meaning I would pay £575.00.

I hope this makes sense! Thanks for your patience.

best wishes

tom

[Ian McTernan CTA]

The solicitor dealing with this should be able to provide you with an answer on this and help complete the SDLT Return.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com