SDLT relief change for shared ownership properties

SDLT relief changes for shared ownership properties

This week’s Budget brought welcome news for purchasers of shared ownership properties. First time buyer SDLT relief has now been extended to all qualifying purchases.

When buying a shared ownership property, the purchaser can choose whether to pay Stamp Duty Land Tax (SDLT) on the value of the whole property or just on the portion they are buying. SDLT relief for first time buyers previously only applied when the buyer chose to pay all the SDLT upfront. In the Autumn Budget, Chancellor Philip Hammond announced that this relief will now apply to all eligible shared ownership purchases.

The extension to the relief will also be backdated. Anyone who purchased an eligible shared ownership property on or after 22 November 2017 will be able to claim back the SDLT they paid.

What is first time buyer SDLT relief?

First time buyers qualify for SDLT relief when:

  • *The property purchase price is not more than £500,000
  • *The buyer is an individual who has not previously purchased a property; if there is more than one purchaser all individuals must be eligible
  • *The property must be the purchaser’s only residence

Qualifying first time buyers pay SDLT as follows:

  • *0% on the first £300,000
  • *5% on the amount between £300,000 and £500,000

The relief provides significant savings for many first time buyers. Qualifying purchasers of shared ownership properties will now benefit from the same savings.

How to claim SDLT refund

If you purchased a qualifying shared ownership property on or after 22 November 2017, you can claim back a refund of the SDLT you paid.

You must contact HMRC in writing to claim your refund and include:

  • *The reason why you are claiming a refund
  • *The unique transaction reference number of your original SDLT return
  • *The amount to be refunded
  • *Confirmation of who to pay i.e. you, the purchaser

The deadline for shared ownership SDLT refunds is 28 October 2019.

Help to claim your SDLT refund

The expert team at PM Property Lawyers can help you claim your SDLT refund. We make it as simple and as speedy as possible. Contact us on 0114 249 6926 or email for more details.

More information on SDLT and shared ownership properties here.


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