Shared Ownership Stamp Duty
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Shared Ownership - Stamp Duty
Shared ownership refers to buying a house from a housing association in stages.
Shared ownership buyers usually purchase a percentage of the property under a mortgage, whilst paying the housing association or local authority rent on the rest. However, because the property is not 100 per cent owned by the buyer, who is eligible to pay Stamp duty? Does the buyer pay for their percentage, or not if it falls below the minimum stamp duty threshold?
When a shared ownership lease is granted, the purchaser or purchasers can either pay stamp duty land tax at each separate stage of their purchase – they pay as and when they buy each percentage block of their property.
Alternatively, the property buyer can make a market value election and pay tax as if the property had been purchased outright from the start. The purchaser and their legal advisers must make this decision. Stamp Tax advisers can assist buyers in calculating how much tax is owed in each instance, but this is the extent of the aid that they can give.
As of the 2008 Budget, stamp duty on shared ownership homes will not be requested until the purchaser owns 80 per cent or more of the house.
If you require any further information about stamp tax for shared ownership properties, please contact the Stamp Taxes Help Line on 0845 603 0135.
To contact one of our advisers or receive a FREE quote, please fill out our quick enquiry form.
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