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A stamp duty exemption announced in the Budget will apply to shared ownership schemes under which purchasers buy less than 80% of the property, but not to shared equity schemes where the buyer acquires a 100% interest from the outset, the Treasury has confirmed. 

Following the Budget announcement, buyers who purchase less than 80% of the market value will not have to pay stamp duty unless the value of their share is above the duty threshold of £125,000 (£150,000 in a disadvantaged area). If the buyer is paying more than the threshold for his share (whatever proportion that may be), stamp duty of 1% will be charged on that amount.  

If the buyer initially purchases less than 80% of the property, there will be a continuing exemption from stamp duty for the purchase of further shares up to 80%. But if he buys a share which means he then owns more than 80% of the property, the buyer will be liable for stamp duty at the current rate – but only on the portion above 80%. 

However, the exemption announced in the Budget does not apply to shared equity schemes, under which the purchaser acquires a 100% interest in the property at the outset. These include the government’s new MyChoiceHomeBuy scheme, the Cooperative Bank’s Ownhome scheme and English Partnerships’ first-time buyer initiative.