Q&As

A tenant of a shared ownership lease who currently owns 65% of the property will proceed with final staircasing as part of a sale of the property and sell 100% of the property. Will the tenant seller and the buyer both pay stamp duty land tax?

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Produced in partnership with Sean Randall of Blick Rothenberg
Published on LexisPSL on 26/03/2019

The following Tax Q&A produced in partnership with Sean Randall of Blick Rothenberg provides comprehensive and up to date legal information covering:

  • A tenant of a shared ownership lease who currently owns 65% of the property will proceed with final staircasing as part of a sale of the property and sell 100% of the property. Will the tenant seller and the buyer both pay stamp duty land tax?

It is implicit in this Q&A that an election has not been made for stamp duty land tax (SDLT) to be charged on the market value of the lease at the time of its grant (under paragraph 2 or 4 of Schedule 9 to the Finance Act 2003 (FA 2003)). If it had been made, no SDLT would be chargeable on the final staircasing transaction. If that is right, subject to the below, SDLT will be chargeable on the (35%) acquisition made by the tenant on the final staircasing transaction. SDLT will also be chargeable on the (100%) acquisition made by the buyer on his purchase of the property. This is logical: two separate chargeable interests are acquired by two separate people in pursuance of two separate contracts.

The qualification relates to the potential availability of relief fo

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