Shared Ownership Stamp Duty: Pay on Your Share or on the Full Value

You choose how to pay Stamp Duty Land Tax (SDLT) on a shared ownership home. You can pay on the share you are buying now, and more later if your total share goes over 80%. Or you can make a market value election and pay once, on the full market value of the home, with nothing more to pay on later shares.

Checked 20 October 2026. This is general information for England and Northern Ireland and is not tax advice.

The two ways to pay

Paying in stages. SDLT is charged on the premium: the price you pay for your share. If you later buy more shares, you pay no further SDLT and file no further return while your total share stays at 80% or below.

A market value election. You pay SDLT once, as if you were buying the whole home at its full market value. After that, you pay no more SDLT on the home, however many shares you buy later.

Both routes are set out in HMRC's guidance on Stamp Duty for shared ownership property. Wales has its own tax, Land Transaction Tax, which this guide does not cover.

Paying in stages

You pay SDLT on the premium you pay for your first share, using the ordinary rates. In many purchases that is little or nothing, because a share is worth less than the full home.

Rent can matter too. If the annual rent on the part you do not own is high, HMRC counts the present value of the rent as well. First-time buyer relief, covered below, also reaches the rent.

Staircasing is where the 80% line comes in. Buy more shares, keeping your total at 80% or below, and you do not pay SDLT or tell HMRC. Once your total goes over 80%, you file a return and pay SDLT on that purchase and on any later ones. HMRC bases the amount on the total you have paid for the home so far.

Making a market value election

You make the election in the SDLT return for your purchase, or by amending that return up to 12 months after its filing deadline. HMRC states plainly that you cannot cancel it, so you cannot change your mind once it is made.

Because you have paid on the full value, you owe no more SDLT when you staircase, including past 80%.

Worked examples

These figures use the standard rates in force for completions from 1 April 2025 (checked on GOV.UK, 20 October 2026). They are illustrations. Your own figures depend on the lease, the rent and your circumstances.

Example 1: a buyer who is not a first-time buyer

You buy a 40% share, costing £120,000, of a home with a full market value of £300,000.

• Paying in stages: SDLT on £120,000 is £0, because the zero rate covers the first £125,000.
• Market value election: SDLT on £300,000 is £5,000 (2% on the £125,001 to £250,000 band, then 5% on the £50,000 above that).

Paying in stages costs nothing today. The cost can come later if you staircase past 80%. Say you reach 100% and the home has stayed at £300,000, so the total you have paid is £300,000. SDLT is then worked out on that total, which on these figures is £5,000. The election would have cost you £5,000 at the start instead. A rise in the home's value would make the staircasing figure bigger. The election figure is fixed on the value when you buy.

Example 2: a first-time buyer

You buy a 50% share, costing £200,000, of a home with a full market value of £400,000, and all the buyers qualify as first-time buyers.

• Paying in stages: SDLT on £200,000 is £0 (first-time buyer rates: nil up to £300,000).
• Market value election: SDLT on £400,000 at first-time buyer rates is £5,000 (nil to £300,000, then 5% on £100,000).

Relief is available to a shared ownership buyer when the full market value is £500,000 or less. Above that, the relief is lost and the standard rates apply.

First-time buyer relief on shared ownership

First-time buyers pay no SDLT up to £300,000 and 5% on the part from £300,001 to £500,000. For shared ownership, the £500,000 limit is tested against the full market value of the home, not your share. HMRC explains the rules in its Stamp Duty Land Tax manual (SDLTM29885). Our guide to first-time buyer stamp duty relief covers who counts as a first-time buyer.

Which route fits

We cannot choose for you, and the right choice depends on your own plans and tax position. These are the facts that tend to decide it:

• Do you expect to staircase? An election costs more at the start but leaves nothing to pay later. Paying in stages costs less at the start and may cost more if you go past 80%.
• Is the full market value above the SDLT threshold? If the full value is at or below the point where tax starts, an election can cost nothing, and GOV.UK says it is often best to do this when the total market value is no more than the SDLT threshold.
• Can you undo it? No. Check the figures before you sign the return.

For tax advice on which route is better for you, speak to an accountant or tax adviser. We file the return with the route you choose. If you are comparing the stakes, our guide on whether shared ownership is worth it covers the legal side of the scheme as a whole.

Filing the return

Your solicitor or conveyancer completes the SDLT return (the SDLT1) and files it with HMRC after completion, within 14 days of completion for most purchases. The choice between the two routes is made in that return, so tell us which one you want before we file.

Questions people ask

Do you pay stamp duty on shared ownership?

You may. You pay SDLT either on the share you buy, or on the full market value if you make a market value election. Either can come to nil: the zero rate covers the first £125,000 for most buyers, and first-time buyers pay nothing up to £300,000.

Do you pay stamp duty when you staircase?

Not while your total share stays at 80% or below, if you chose to pay in stages. Once you go over 80% you pay SDLT on that purchase, based on the total you have paid so far. If you made a market value election, you pay nothing more.

Can you change your mind after a market value election?

No. A market value election is irrevocable. You can make it in the SDLT return or by amending that return up to 12 months after the filing deadline.

Is stamp duty charged on the rent?

Sometimes. If the annual rent is high, HMRC counts the present value of the rent when working out the tax. First-time buyer relief covers the rent when it applies.

Can I work out my own figure?

Our Stamp Duty calculator shows both routes side by side for a shared ownership purchase. The numbers on this page are examples, so use the calculator for your own price and share.

Buying a shared ownership home with us

Our shared ownership solicitors page sets out each fee line, including "Shared Ownership" at £250 + VAT, and what we do for you. For an exact, itemised figure, get a quote for your purchase. If you already own a share and want to sell it, see our guide to selling a shared ownership home.

Sources

Shared ownership and Stamp Duty: GOV.UK, SDLT: shared ownership property, checked 20 October 2026.

First-time buyer relief on shared ownership: Stamp Duty Land Tax manual, SDLTM29885.

Current rates: GOV.UK, Stamp Duty Land Tax residential property rates.

This is general information, not tax advice. Rates and reliefs change; check the position that applies on your completion date.