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Where Taxpayers and Advisers Meet

Stamp duty rate when owning a share of freehold

Tai3000
Posts:3
Joined:Fri Dec 20, 2024 8:03 pm
Stamp duty rate when owning a share of freehold

Postby Tai3000 » Sun Mar 23, 2025 4:11 pm

Hi,
My friend owns a 1/3 share of freehold in block of flats (nominal value as all leases are long), but does not own the lease to any of the flats. They don’t own any other property at all. They are now hoping to buy a house which would be their main home, principal residence..
We’re not sure if ownership of a share of freehold constitutes ownership of a first property, leading to the house purchase becoming subject to higher rates of SDLT?
Any thought?
Many thanks..

bd6759
Posts:4448
Joined:Sat Feb 01, 2014 3:26 pm

Re: Stamp duty rate when owning a share of freehold

Postby bd6759 » Sun Mar 23, 2025 5:51 pm

As long as the leases all have more than 21 years to run, it won’t be regarded as holing a major interest in a dwelling.

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09780


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