• Stamp Duty On Shared Ownership

    By Guest on 26th Jun 2018

    I was looking at your information on stamp duty (as below). Can I ask on resale of a shared ownership property, what is the new buyer's liability to stamp duty if the original owner had chosen to pay stamp duty in stages (stair casing)? Can the new buyer still elect to pay stamp duty on market value?

    Stamp Duty
    When buying a new shared ownership lease the tenant can elect to pay rent either based on the initial premium paid for the initial share or based on the market value of the property as a whole. The advantage of the latter is that the tenant does not then have to pay duty on any further shares acquired. If the former option is chosen then once the tenant acquires shares beyond 80% duty has to be paid. This only applies to the original tenant however and where the original tenant elects to pay duty on the initial market value this does not reduce the liability of a subsequent purchaser to pay duty.

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