{"id":125718,"date":"2022-04-04T13:00:41","date_gmt":"2022-04-04T06:00:41","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/did-we-pay-4000-stamp-duty-unnecessarily-when-selling-our-flat\/"},"modified":"2022-04-04T13:08:58","modified_gmt":"2022-04-04T06:08:58","slug":"did-we-pay-4000-stamp-duty-unnecessarily-when-selling-our-flat","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/did-we-pay-4000-stamp-duty-unnecessarily-when-selling-our-flat\/","title":{"rendered":"Did we pay \u00a34,000 stamp duty unnecessarily when selling our flat?"},"content":{"rendered":"


\nShared-ownership property was sold under process of back-to-back staircasingQ My fiancee and I have recently sold our shared-ownership flat under an increasingly popular process known as back-to-back or simultaneous staircasing. We owned 40% but decided, with a view to making the flat more marketable, we would sell 100% \u2013 by effectively acquiring the remaining 60% and selling the entire 100% to the buyer in parallel transactions. We were told by our solicitor that stamp duty land tax (SDLT) was payable on the back-to-back staircasing. This meant that SDLT was paid twice on the sale of the flat, and we had to pay SDLT again on our new property. A very costly exercise.Several of our ex-neighbours are also selling their flats, and have been told by different solicitors that SDLT is not payable on such back-to-back staircasing. As with our solicitor, their solicitors cite confirmation received directly from HM Revenue and Customs and external counsel.It appears this is a grey area, which HMRC hasn\u2019t addressed, and is largely related to the applicability (or otherwise) of subsale relief. Any help would be much appreciated, as if indeed SDLT was not payable, we have paid \u00a34,000 unnecessarily simply because our solicitor adopted a more conservative position than many others in the market.JPA I don\u2019t think that you ended up paying SDLT on your staircasing because of your solicitor\u2019s conservative position. I think it\u2019s more to do with how you chose to pay SDLT when you acquired your 40% share in the flat. According to HMRC guidance, when you buy a property through a shared-ownership scheme run by an \u201capproved public body\u201d you can choose to pay SDLT on the market value of the property or pay SDLT in stages. If you choose market value, you make a one-off payment and there\u2019s no more SDLT to pay even if you later increase your share. However, if you choose to pay in stages \u2013 as I suspect that you and your fiancee did \u2013 you initially pay SDLT on the \u201clease premium\u201d (which is the price you paid for the lease). But there\u2019s more SDLT to pay once you acquire a bigger share (using the staircasing process) and your total share in the property is more than 80%. You will find a detailed explanation of how the SDLT is worked out in the HMRC guidance. Continue reading…
\n
\nSource : theguardian.com
\nRead more…Did we pay \u00a34,000 stamp duty unnecessarily when selling our flat?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shared-ownership property was sold under process of back-to-back staircasingQ My fiancee and I have recently...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-125718","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-wHI","jetpack-related-posts":[{"id":120061,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/is-our-solicitor-wrong-when-she-says-we-owe-10500-in-stamp-duty\/","url_meta":{"origin":125718,"position":0},"title":"Is our solicitor wrong when she says we owe \u00a310,500 in stamp duty?","date":"January 18, 2021","format":false,"excerpt":"\r We are replacing our main residence but my husband owns a buy-to-let flat Q My husband and I are due to exchange on a house today and we were under the impression during the four-month conveyancing process that we would not have to pay stamp duty because we were\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":963,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/does-the-3-stamp-duty-for-second-properties-apply-in-scotland\/","url_meta":{"origin":125718,"position":1},"title":"Does the 3% stamp duty for second properties apply in Scotland?","date":"January 7, 2016","format":false,"excerpt":"\r We might rent out our flat and buy a house, but are unsure if the stamp duty rules apply to our new house even though we\u2019d be living in it Q I live with my wife in a flat in central Glasgow and we\u2019re looking to move somewhere quieter\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":121604,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/what-are-the-tax-and-mortgage-implications-if-i-buy-a-flat-with-my-son\/","url_meta":{"origin":125718,"position":2},"title":"What are the tax and mortgage implications if I buy a flat with my son?","date":"August 23, 2021","format":false,"excerpt":"\r I would pay a \u00a3100,000 deposit and want to own two-fifths and leave my share to him in my willQ My 30-year-old son is paying so much in rent that he is struggling to save a big enough deposit to buy his first flat. 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My husband does not work due to ongoing mental health issues and he does not own any property of his own.I want to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/125718"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=125718"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/125718\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=125718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=125718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=125718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}