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Where Taxpayers and Advisers Meet

Shared ownership staircasing

tbo2021
Posts:2
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!

T

SDLT Geek
Posts:224
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.

tbo2021
Posts:2
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.


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