Stamp Duty on shared ownership is notoriously complicated. Currently, when you purchase a new build shared ownership property you have two options - either pay stamp duty on the price you are paying for your share and the rent or pay on the full market value.

If you’re buying your first home you can claim a discount (relief) if the property you buy is your first home.

This means you’ll pay:

• no SDLT up to £425,000

• 5% SDLT on the portion from £425,001 to £625,000

You’re eligible if you and anyone else you’re buying with are first time buyers.If the price is over £625,000, you cannot claim the relief. 

So for example...

You are a first time buyer and purchase a property for £500,000. 

The SDLT you owe will be calculated as:

• 0% on the first £425,000 = £0

• 5% on the remaining £75,000 = £3,750

total SDLT = £3,750