Stamp Duty on Shared Ownership Homes
Everything you need to know
Buying your home through Shared Ownership is an exciting milestone. However, stamp duty can often feel confusing. This straightforward guide explains Stamp Duty Land Tax (SDLT) clearly, so you know exactly what to expect when buying a Shared Ownership property.
What is Stamp Duty?
Stamp Duty is a tax you pay when purchasing a property. The amount you pay depends on several factors, including the property’s purchase price, your ownership share, your residency status in the UK, whether you’re a first-time buyer, if the property will be your main residence, and even how you choose to pay.
Our Shared Ownership Stamp Duty Calculator will help you estimate how much you might need to pay.
Stamp Duty options for new Shared Ownership homes
If you’re buying a brand-new Shared Ownership home, you typically have two choices. Your solicitor can advise you on the best option for your circumstances:
1) Pay Stamp Duty on the full market value
You can pay stamp duty based on the full market value of your home when you first buy it. Choosing this means you won’t pay any additional stamp duty later if you purchase more shares (known as “staircasing“). This could save you money in the long run if you plan on eventually owning 100% of your home.
2) Pay Stamp Duty on your initial share and rent
Alternatively, you can pay stamp duty based on the share you initially buy. Although this may mean lower upfront costs, you might need to pay additional stamp duty if you intend to increase your ownership share beyond 80% later on
Stamp Duty for previously owned Shared Ownership homes
When buying a previously owned Shared Ownership property, stamp duty applies only to the share you’re purchasing. The rent portion does not impact your stamp duty calculation.
How much Stamp Duty will you pay?
Use our Shared Ownership Stamp Duty calculator to get an estimate and always discuss and check the exact amount with your solicitor.
Other useful information
First-time buyers
If you’re buying your first home, you might qualify for stamp duty relief, which may reduce the amount you need to pay.
Government changes
Keep an eye on government announcements as stamp duty thresholds and rules can change periodically.
Consult your solicitor
Always speak with a solicitor experienced in Shared Ownership transactions to choose the most beneficial stamp duty option.
Budget carefully
Consider potential future costs if you decide not to pay stamp duty upfront on the full property value.
Need further assistance?
Stamp Duty can be complex, and this guide provides general advice only. For personalised guidance tailored to your specific situation, it’s essential to talk directly with your solicitor.