Stamp Duty – Shared Ownership Mortgage.
In his 2018 Budget the Chancellor announced some retrospective changes in stamp duty. Theses stamp duty changes apply to first time buyers who have shared ownership properties. The changes could lead to some people being able to make tax reclaims.
Stamp Duty is the tax you pay when you purchase a property. Stamp Duty is based on the total market value of the property being purchased. Those buying a shared ownership property have a choice. They can pay stamp duty based on the total market value of the property being purchased, or pay stamp duty in stages as they buy more of the property they own.
The 2018 Budget confirmed that stamp duty relief for first time buyers would be extended. Furthermore, the stamp duty relief can be backdated and considered on previous purchases of shared ownership property.
In the 2017 Budget there was a cut in stamp duty for first time buyers purchasing a property with a value of up to £300,000. This cut in stamp duty also applies to the first £300,000 of a property being purchased worth up to £500,000.
However, stamp duty relief only applied where first time buyers elected to pay stamp duty on the full market value of the property, or on the first share of the property they purchased. Stamp Duty relief didn’t apply to any subsequent purchases of shares in the property, known as stair casing.
If you fall into this category, we recommend you get in touch with HM Revenue & Customs (HMRC). But hurry, because you’ll need to think about making a claim.
Furthermore, you need to claim any refund before 28 October 2019.