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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16546
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I'm looking to make a staircasing purchase on a property I

Customer Question

Hi, I'm looking to make a staircasing purchase on a property I own and am having difficulty on calculating the SDLT to pay. Are you able to assist me with this?
JA: Have you talked to a tax professional about this?
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Customer: I'm making a 25% purchase on a shared ownership lease which will take me to 100% ownership of the lease - I currently own a 75% share. I'm then simultaneously selling the 100% lease on the open market.
Submitted: 13 days ago.
Category: Tax
Customer: replied 13 days ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call.
Customer: replied 13 days ago.
Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Sam replied 13 days ago.

Hi

How much was the intial 75%
How much is this further 25%

will you sell the lease and property or just the lease

Thanks

Sam

Customer: replied 13 days ago.
The initial 75% share was £217,500. The 25% share I am now buying is £76,750
Expert:  Sam replied 13 days ago.

Hi

As you will own more than 80% then stamp duty will be due on the whole amount owned at that tax point which will be £225150 total but it will be NIL if you have never and do not own any property which you do not indicate that you do

Thanks

Sam

Customer: replied 13 days ago.
The amount owned will be £307,000 not £225,150.
Customer: replied 13 days ago.
I bought the 75% share when the fmv was £290,000.
Expert:  Sam replied 13 days ago.

Hi

I do apologise no idea where I got that figure from its the value at the stage more than 80% is owned that's considered not what it was back at the original purchase stage

Assuming its your only property and you are a first time buyer with this staircasing  and you intend to live in it then stamp duty will be £350

Thanks

Sam

Customer: replied 13 days ago.
Hi Sam. Where did you get that calculation from? Are you sure you are qualified to help on this issue?
I feel quite upset having paid £40 that you are giving incorrect information. I would like a refund please.
Expert:  Sam replied 13 days ago.

Hi

I just added it up wrong that's all - your figure is correct - I can only apologise im answering several questions at once and my calculation (by my mistake as a worker should never blame his tools -  malfunctioned)

So what are you upset about I

Thanks

Sam

Customer: replied 13 days ago.
Your calculation of £350 stamp duty is incorrect. I can't see how you have come to that answer. I was hoping you would be able to help me with the complicated issue of linked transactions with this sort of SDLT payment but you haven't mentioned anything about this.
Expert:  Sam replied 13 days ago.

HI

I used the HMRC website on the £307000 figure based on you being a first time buyer this being your home and intending to live in it

Its correct

Thanks

Sam

Customer: replied 13 days ago.
No it isn't. The stamp duty payable on the £307,000 property is £5,350. Then because I am only purchasing 25% this amount is apportioned 1:4 which works out at £1337.50 My question is about the further tax to pay because I am making a linked transaction with the SDLT I originally paid when I bought the initial 75% share. Do you know anything about the further tax to pay with the linked transaction? This is a further calculation as specified on the .gov website examples.
Expert:  Sam replied 13 days ago.

Hi

No it isnrt asa first time buyer - as indicated above

Customer: replied 13 days ago.
I am not a first time buyer. This is the second property I have bought. Also this is the second transaction or staircasing transaction I am making from 75% to 100% in order to sell the property on the open market. Perhaps this is where you are getting confused.
Customer: replied 13 days ago.
The first transaction was the purchase of 75% of the property and I paid £1,850 SDLT. The second transaction is my purchase of 25% of the property which will take me to 100% ownership of the lease. I will then simultaneously sell the 100% lease to my current buyer.
Customer: replied 13 days ago.
Given that you now know I am not a first time buyer are you able to offer anything further?
Expert:  TetyanaP-admin replied 12 days ago.
Hello,
It seems the professional has left this conversation. This happens occasionally, and it's usually because the professional thinks that someone else might be a better match for your question. I've been working hard to find a new professional to assist you with your question, but sometimes finding the right professional can take a little longer than expected.
I wonder whether you're OK with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Tetyana-moderator
Customer: replied 12 days ago.
I am ok to continue waiting