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Stamp Duty Land Tax: Shared Ownership Schemes

Volume 475: debated on Wednesday 14 May 2008

To ask the Chancellor of the Exchequer pursuant to the answer of 21 April 2008, Official Report, columns 1685-86W, on stamp duty land tax: shared ownership schemes (1) whether (a) Social Homebuy and (b) New Build Homebuy are shared ownership or shared equity schemes for the purposes of the stamp duty land tax rule; (204880)

(2) whether the homebuyer, when purchasing the final 20 per cent. of the equity, having previously purchased up to 80 per cent., will be required to pay stamp duty on 100 per cent. of the property’s total capital value or only the final 20 per cent.

Both social homebuy and new build homebuy are shared ownership schemes.

When the homebuyer in a shared ownership arrangement purchases the final 20 per cent. of a property, having previously purchased 80 per cent. free of SDLT, they will only pay stamp duty land tax on the final 20 per cent. of the property.