Staircasing & SDLT: How Compass Helped a Homeowner Avoid Costly Mistakes
March 24, 2025
When purchasing a shared ownership property, understanding SDLT (Stamp Duty Land Tax) obligations at each stage of staircasing is crucial. Unfortunately, many homeowners are unaware of the long-term impact of their initial SDLT choices, which can lead to confusion—and costly errors—when increasing their ownership share.
One of our recent clients found herself in exactly this situation. Unsure of her previous SDLT payments, she turned to Compass for expert guidance.
The Client’s Situation
Our client had staircased (purchased additional shares) in her shared ownership property multiple times. However, when preparing for her third staircasing transaction, she faced a major problem:
🔹 She didn’t know if SDLT had been paid on the original purchase.
🔹 She wasn’t sure if a Market Value Election had been made.
🔹 Without this information, calculating her SDLT liability correctly was impossible.
How Compass Solved the Problem
Our team took a methodical approach, reviewing original transaction documents to determine whether SDLT had been paid at the outset and if a Market Value Election had been made.
Once we had the full picture, we:
✅ Calculated her third staircasing transaction accurately
✅ Ensured she paid the correct SDLT amount—no more, no less
✅ Provided her with complete clarity on her tax obligations
The Lesson: Expert Guidance Matters
This case highlights an important takeaway—SDLT on staircasing is complex, and getting it wrong can be costly. Many buyers (and even solicitors) don’t realise the long-term impact of SDLT decisions made at the initial purchase stage.
💡 The key lesson? Speak to experts who know what they’re looking for—before making a costly mistake.
Unsure about SDLT on your staircasing transaction? We can help.
If you’re navigating a shared ownership purchase or staircasing, don’t leave your SDLT liability to chance. Let Compass guide you to the right outcome.