HMRC has updated its guidance to reflect the Budget 2018 announcement extending the relief to include purchases through approved shared ownership schemes where buyers choose to pay SDLT in stages, instead of electing for market value treatment.
HMRC has updated its guidance to reflect the Budget 2018 announcement extending the relief to include purchases through approved shared ownership schemes where buyers choose to pay SDLT in stages, instead of electing for market value treatment. The extension will apply retrospectively from 22 November 2017.
The updated guidance outlines the application of SDLT rates for first-time buyers claiming relief in respect of the grant of a shared ownership lease as follows:
‘Staircasing’ transactions (purchases of further shares in the property) will not lead to the withdrawal of the relief claimed on the grant of the lease, even if the total paid for all the transactions exceeds £500,000.
Where a market value election is not made, no further SDLT will be due until the purchaser increases their ownership share in the property over 80%. The normal rules for shared ownership, including the standard SDLT residential rates and method of calculation, will apply to the transaction that takes the purchaser’s ownership share over 80% and any subsequent staircasing transactions.
HMRC has updated its guidance to reflect the Budget 2018 announcement extending the relief to include purchases through approved shared ownership schemes where buyers choose to pay SDLT in stages, instead of electing for market value treatment.
HMRC has updated its guidance to reflect the Budget 2018 announcement extending the relief to include purchases through approved shared ownership schemes where buyers choose to pay SDLT in stages, instead of electing for market value treatment. The extension will apply retrospectively from 22 November 2017.
The updated guidance outlines the application of SDLT rates for first-time buyers claiming relief in respect of the grant of a shared ownership lease as follows:
‘Staircasing’ transactions (purchases of further shares in the property) will not lead to the withdrawal of the relief claimed on the grant of the lease, even if the total paid for all the transactions exceeds £500,000.
Where a market value election is not made, no further SDLT will be due until the purchaser increases their ownership share in the property over 80%. The normal rules for shared ownership, including the standard SDLT residential rates and method of calculation, will apply to the transaction that takes the purchaser’s ownership share over 80% and any subsequent staircasing transactions.