SDLTM27030 - Reliefs: Right to buy transactions, shared ownership leases etc: Shared ownership leases: market value election where freehold reversion is available: detailed conditions FA03/SCH9/PARA2
In addition to meeting the general conditions at SDLTM27020, a shared ownership lease under which the freehold reversion is available must meet the following conditions.
- The lease must provide for the lessee (or lessees) to acquire the reversion
- The lease must be granted partly in consideration of rent and partly in consideration of a premium calculated by reference to
- the market value of the dwelling, or
- a sum calculated by reference to the market value of the dwelling
- The lease must contain a statement of
- the market value of the dwelling, or
- the sum calculated by reference to the market value of the dwelling
by reference to which the premium is calculated.
- The lessee must elect for stamp duty land tax to be charged in accordance with FA03/SCH9/PARA2 on the market value, or the sum calculated by reference to that value, stated in the lease.
Please note that FA03/SCH9/PARA2(5) disapplies the definition of market value in FA03/S118 for this purpose, the effect being that the market value is computed on a vacant possession basis.
The election is made in the land transaction return submitted in respect of the grant of the lease by showing the market value as the consideration, or an amendment to that return changing the consideration to the market value. If the election is made by amendment it must be made within 12 months of the filing date.
The election is irrevocable, that is, once made it cannot be changed, even by an amendment (or further amendment) to the return.