This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Shared ownership staircasing

Joined:Wed Jan 13, 2021 9:11 pm
Shared ownership staircasing

Postby tbo2021 » Wed Jan 13, 2021 9:25 pm

Hi all,

looking for some help on a shared ownership staircasing question and I'd really appreciate your advice.

I bought a 50% share of a property in 2018 as a first-time buyer for £180k and elected to pay SDLT in stages.

The property is now worth £375k full price and I'd like to purchase the remaining 50% share for £187,500.
The purchase will be happening after April so when we're back to normal rates.

I'm confused by the gov uk guidance. Do I pay SDLT on the whole 375 or just on the 187.5?

Thanks in advance!


Joined:Sun Apr 30, 2017 5:45 pm

Re: Shared ownership staircasing

Postby SDLT Geek » Sat Jan 16, 2021 5:00 pm

You pay SDLT on the £187,500, but at rates of tax allowing for linked transactions.

So SDLT would be worked out first on £367,500 (the £180,000 + £187,500 paid). The rates structure would be that in force at the time of staircasing.

The actual SDLT payable would be a fraction of the SDLT so calculated. The fraction here is £187,500 / £367,500.

Joined:Wed Jan 13, 2021 9:11 pm

Re: Shared ownership staircasing

Postby tbo2021 » Sun Jan 17, 2021 4:21 pm

OK great, thanks for clarifying.

Joined:Wed Jan 05, 2022 9:59 am

Re: Shared ownership staircasing

Postby GrahamDuffield » Wed Jan 05, 2022 10:10 am

Could I possibly piggy back on this thread with another example for my circumstances just to check my understanding?!

My partner purchased her 50% of a £150,000 property (so £75,000) back in May 2004.
I am now looking to move in with her and jointly purchase the other 50% with her and the freehold. The house value is now at £280,000 so we need to purchase the other £140,000.
To complicate things, I am renting out my property so am subject to an additional 3% of SDLT at each rate.

If I understand correctly, the tax we will have to pay is therefore:

Final Transaction: £140,000
1st Transaction: £75,000
Total to pay SDLT on: £215,000

Calculated based on
(0% + 3%) = 3% of £125,000 = £3,750
(2% + 3%) = 5% of £90,000 = £4,500
Total SDLT payable is therefore = £8,250

Apportioned to the final transaction as a ratio of £140,000 / £215,000 = 65.11%
Therefore total payable in SDLT is 65.11% of £8,250 = £5,372

Is that correct ????

Thanks in advance!

Return to “Stamp Duty, Stamp Duty Land Tax, SDLT”