Postby paulc » Tue Aug 12, 2003 6:51 am
You are right, special rules apply for shared ownership schemes.
The normal rules would involve payment of two lots of duty
(a)one payment now, which is calculated by reference to two elements
(1)the amount paid for 25% ownership (1% up to 250k, 3% above that)and
(2)the amount of rent paid - this depends on the length of the lease - assuming the lease is between 7 and 35 years, the stamp duty is 2% of the average annual rental payable under the lease
(b) stamp duty will then be payable if and when you acquire the balance of the ownership, based on the stamp duty rates in force when you do this
Alternatively you can elect to pay stamp duty once, now, based on the current market value of the whole property at 3% if the market value is between £250 and £500k.
Paul