SDLTM29890 - Interaction with Shared ownership – Staircasing transactions

The relief for first-time buyers does not apply to subsequent transactions where the purchaser, after being granted the lease, purchases further shares in the property (commonly referred to as “staircasing’’). Any staircasing transaction will not lead to the withdrawal of the relief claimed on the grant of the lease, even if the total paid for all the transactions exceeds £625,000.

Where no market value election is made, no further SDLT will be due until the purchaser increases their ownership share in the property over 80%. Here the normal rules for shared ownership, including the standard SDLT residential rates and method of calculation, apply to the transaction that takes the purchaser’s ownership share over 80% and any subsequent staircasing transactions.