Stamp Duty on Shared Ownership Property

Understanding Stamp Duty Land Tax (SDLT) for shared ownership properties is crucial when purchasing a home. SDLT applies to various types of property, such as freehold, leasehold (new or existing), and shared ownership. In Scotland, SDLT is replaced by Land and Buildings Transaction Tax, while in Wales, it’s replaced by Land Transaction Tax.

The SDLT amount for buying a leasehold property relies on whether it’s an existing (assigned) lease or a new one. Additionally, different SDLT rates apply based on the property type – residential or non-residential.

Typically, SDLT is due when acquiring a property through a shared ownership scheme managed by an authorized public organization. These organizations consist of:

• Local housing authorities
• Housing associations
• Housing action trusts
• Northern Ireland Housing Executive
• Commission for the New Towns
• Development corporations

Shared ownership property buyers can opt for a single payment based on the property’s market value (known as ‘market value election’) or pay the SDLT in installments.

Due to the intricate rules and various factors influencing SDLT amounts, seeking professional assistance is highly recommended.

Our team is here to help you navigate the complexities of Stamp Duty on shared ownership properties.