Note: Up to and including 30 June 2021, you will pay no Stamp Duty Land Tax (SDLT) on the purchase of your main property costing up to £500,000.
The following figures relate to buying property in England. A similar tax is collected separately in Scotland, Wales, and Northern Ireland, at differing rates. Currently, all Legal & General Affordable Homes are located in England.
For first time buyers, if the property value is no more than £500,000, no Stamp Duty is payable on the first £300,000 of the purchase price. 5% is payable on any value from £300,001 and £500,000.
For those who have owned a property before, Stamp Duty is 0% on the first £125,000, with 2% payable on any sum from £125,001 and £250,000. 5% tax is payable on the next £250,000 to £925,000.
You can choose to pay Stamp Duty on the entire value of the property – which while initially expensive means you won’t have to pay Stamp Duty ever again.
Alternatively, you can pay Stamp Duty on your share, which could well be less than the allowance for first-time buyers, then pay the rest in stages. You would not have to pay any further Stamp Duty until your share of the property reaches 80%.
The best approach to paying Stamp Duty will depend on your specific circumstances. Your solicitor or other legal advisers will be able to help you make this decision.