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Where Taxpayers and Advisers Meet

Stamp Duty and Staircasing

Joined:Tue Sep 11, 2018 5:46 pm
Stamp Duty and Staircasing

Postby elliel85 » Tue Sep 11, 2018 5:57 pm

HI hoping someone can help shed some light...

We bought our 35% share of property in 2015, Total market value at the time £250,000. Our share was £87,500.
We now wish to do one staircasing transaction to take us to 100% ownership. The property is now worth £290,000, so our purchase price will be £188,500.

Does our original Transaction count as linked? Our solicitor has calculated our SDLT and it is way above what we were expecting, as he is treating these as linked. However we were under the impression that we are not charged tax on this initial transaction as it took place after 1st March 2008.

Can anyone clarify on the above or provide me with a correct Stamp Duty Calculation?

Thank you in advance for your help

Joined:Sun Apr 30, 2017 5:45 pm

Re: Stamp Duty and Staircasing

Postby SDLT Geek » Wed Sep 12, 2018 7:39 am

When you bought in 2015 did you:
(a) Buy direct from the social landlord, taking the grant of a new lease (when it would probably be a new dwelling) or
(b) Buy an existing lease from someone who had previously acquired from the social landlord (more usually the case for an existing dwelling)?

There is then a further question. On the grant of the lease was SDLT paid on the then total market value of the property, or only on the sum paid to the social landlord?
(a) If you took the grant of a new lease then you will know, as you would have paid SDLT of £2,500 or of £0 accordingly.
(b) If you took the assignment of an existing lease then you might have to look at the lease which would normally contain a clause confirming the point.

It would help to have answers to these two points before answering your question.

Joined:Tue Sep 11, 2018 5:46 pm

Re: Stamp Duty and Staircasing

Postby elliel85 » Wed Sep 12, 2018 1:05 pm

Hi SDLT Geek

We were under a specialist scheme whereby we found a house on the open market (it was not a shared ownership or leased property), we bought our share and our HA bought the other share.

We didn't pay any stamp duty as we opted to pay as we Staircased and our consideration was below £125,000.


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