Independent Financial Life Planners Bishop's Stortford: Working out Stamp Duty on Shared ownership

Friday, 22 January 2016

Working out Stamp Duty on Shared ownership

Stamp duty and the changes that occur with it may mean it is worth taking advice before you buy form experienced financial advisors like Enable’s IFAs in Bishop's Stortford. With Shared ownership you may well have to pay Stamp Duty Land Tax (SDLT) when you buy a property through a scheme run by an approved public body, like a housing association or a housing trust, a development corporation or the local housing authority.

You can also choose how you want to pay your SDLT, you can make a one-off payment based on the market value of the property or you can choose to pay your SDLT in stages. Market value election or a one off payment means you submit a return and pay at the residential rate and the value is worked out on the total market value of the property even if you’re only buying a share. HMRC give the example of if “You buy a 50% share of a property with a market value of £140,000. You have to pay SDLT of £300 (0% on £125,000 and 2% on £15,000).You don’t have to pay any more after this, even if you buy a bigger share in the property at a later stage.

You make your first SDLT payment on the price you pay for the lease (the ‘lease premium’) if it’s above the threshold. You may have to pay extra SDLT if the total rent over the life the lease (known as the ‘net present value’) is more than £125,000. It is not simple but Enable’s IFAs in Bishop's Stortford can help you work it all out.

Source: Gov.UK

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.