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Where Taxpayers and Advisers Meet

SDLT on Shared Ownership

Richard.S
Posts: 1
Joined: Mon Dec 02, 2019 5:42 pm

SDLT on Shared Ownership

Postby Richard.S » Mon Dec 02, 2019 5:59 pm

Hi all,

I currently own a 2 bed Shared Ownership (SO) house, and am undecided on whether to staircase to 100% or sell and buy elsewhere.

I’m trying to work out if we stayed put would we benefit from the SDLT relief?

I read that in 2018 the SDLT rules on SO properties changed, as such they are now eligible to the First Time Buyer relief - although I one site I read stated that this was only applicable for properties purchased from 11/2017 onwards.

Currently we have not paid any SDLT as our share was under the £125k threshold

We purchased our house in 2014, we own a 25% share which was valued at £250k

Current market estimate: between £300-340k depending on which surveyor you ask.

Any guidance would be appreciated;

Thanks

Richard

SDLT Geek
Posts: 174
Joined: Sun Apr 30, 2017 5:45 pm

Re: SDLT on Shared Ownership

Postby SDLT Geek » Mon Dec 02, 2019 11:54 pm

The SDLT for staircasing out in one go would be £4,066 assuming:

A payment of £62,500 in 2014 for a 25% share.
A payment of £240,000 now (75% of the mid figure of £320,000).

These total £302,500.
SDLT at today’s rates on £302,500 would be £5,125.
But you pay a fraction of that.
The fraction is 240,000 / 302,500.

That gives SDLT of £4,066.

First time buyer relief does not apply here.


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