Answers · UK 2025/26
How does Stamp Duty work on Shared Ownership in the UK?
On Shared Ownership you choose either: (1) pay SDLT only on the share you're initially buying (cheaper short-term, more SDLT due on staircasing above 80%), or (2) pay SDLT on the full market value upfront (no future SDLT regardless of staircasing). Election within 30 days of purchase.
Full answer
Shared Ownership in England/NI offers two SDLT election options. (1) Market Value Election — pay SDLT on the full property value at the original purchase price band, and no further SDLT is owed regardless of how much you staircase up later. Best if you plan to staircase to 100%. (2) Lease Premium Election (default) — pay SDLT only on the share you buy initially + any rent SDLT due. If you later staircase past 80%, SDLT becomes payable on additional shares above 80%. Best if you might never staircase past 80%. First-time buyer SDLT relief applies to either election if the property is no more than £500,000 and you meet FTB criteria. Election made on the SDLT return within 30 days of completion — irrevocable. Worked example: £300,000 home, buy 40% share for £120,000. Default election: SDLT on £120,000 (FTB relief makes this £0). Market value election: SDLT on £300,000 (FTB relief makes it £0 too — up to £500,000). Scotland (LBTT) and Wales (LTT) have similar but not identical Shared Equity rules.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.