Stamp duty on shared ownership

[johnny37]

Posted in Law as well.

When buying in shared ownership scheme with a housing association, do you pay stamp duty:

(1 on the whole lot
(2) only on the portion you are buying
(3 ) splt betwen you and the housing association
or
(4) not at all on the basis if the portion you are buying is below the stamp duty threshold

[Uzoma]

Stamp Duty in most cases will apply and is payable at
1% of the purchase price. With shared ownership you
have the option of paying Stamp Duty only on the equity
you are purchasing. However, you will also have to pay
a percentage of the first year�s annual rent. This is
normally cheaper than paying Stamp Duty on the full
value of the home you are buying, however, if you
should decide to purchase more equity at a later stage,
Stamp Duty will again be payable.
If you decide to pay Stamp Duty on the full value of the
home you are buying at the outset, then no further Duty
will be payable should you decide to purchase more
equity later on. Your solicitor will advise you for sure.
Hope this helps.