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Where Taxpayers and Advisers Meet

Buying shared ownership property

petter2
Posts:1
Joined:Mon Dec 21, 2020 4:12 pm
Buying shared ownership property

Postby petter2 » Mon Dec 21, 2020 4:20 pm

Hi,
I am a first-time buyer and purchasing a 25% share (£222k) of an £890k property.
My understanding is I wouldn't pay stamp duty even after the stamp duty holidays if I only pay it on my share.
But would you advise me to pay the stamp duty for the full purchase price rather than only my share to benefit from the reduced rate? Could I get this refunded if I later sell the property without staircasing? Or could I 'pay' stamp duty for the first 500k to take advantage of the stamp duty holiday now and then pay again when staircasing?
Thanks

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Buying shared ownership property

Postby AGoodman » Thu Jan 07, 2021 4:07 pm

Is this part of a shared ownership scheme with special SDLT rules (I'm just surprised at the value for a housing scheme)

If it's an ordinary joint purchase (i.e. you and the 75% buyers are all buying the whole property from a third party) then the SDLT would be calculated on the full value and you would then pay your 25% of it alongside the other purchasers.

If you are just buying a 25% share and the 75% is staying in the same hands as before, then your SDLT would be based on just the price you are paying so could be under the threshold.

I'm not aware of there being an option but staircasing isn't an area I know well


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