Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of reviewing the Stamp Duty Land Tax rules for shared ownership properties, particularly the requirement for first‑time buyers to pay SDLT when staircasing above 80% ownership, despite not purchasing an additional property.

The Government already offers flexibility when SDLT is due on transactions relating to shared ownership properties. When a shared ownership lease is first granted, the purchaser can choose to either pay SDLT on the market value of the property, in which case no further SDLT will be due when purchasing additional interest in the property (including when staircasing above 80%); or instead choose to pay SDLT in stages. Purchasers of shared ownership properties can also claim First-time Buyers’ Relief (FTBR) on purchases where the value of their property does not exceed £500,000. For those purchasers who choose to pay SDLT in stages, SDLT will be payable on any staircasing transaction which takes them over 80% ownership. In those circumstances, FTBR is not available as the person staircasing is no longer a first-time buyer. The ability to choose when SDLT is due, along with the relief available to first-time buyers, can help reduce the amount of SDLT due when initially buying a shared ownership property as your first home.