Hi, thank you for your question. Where did you get the information that if your share of current property is £40,000 you would only need to pay standard SDLT?
That is not the case and you are being misinformed by the agents. The new SDLT rates are clear that if you already own a property or have a legal interest in property you will need to pay the higher rate stamp duty. The only exemption is if you are purchasing the second property to directly replace your first as your main residence.
If you can confirm the value of the new property I can confirm the amount of stamp duty you will be liable for.
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But from what I understand, the new property you are purchasing will not be valued less than £40,000 - is that correct?
Therefore the "transaction" for the second property is over £40,000 and the higher rate SDLT will apply.
The guidance does state that "Residential properties, including a tenancy or lease of a residential property, worth less than £40,000 will not be taken into account when determining if an additional residential property is being purchased." and the current property you own is worth £122,000 - I do not think that the inland revenue will consider the discount you obtained as they will look at the actual value of the property.
The answer is that both properties will be taken into account as they are each valued at more than £40,000.
The government guidance is that it is the value of the property not your share that gets taken into account and in any event even if you were to look solely at your share of 50% this will have been valued at £61,000 in February 2015 - the whole value of the property gets taken into account and the right to buy discounts will not apply