Staircasing, Selling & Subsale Relief—£0 SDLT Payable
April 22, 2025
When navigating shared ownership and staircasing, Stamp Duty Land Tax (SDLT) rules can quickly become complex. One of our clients recently found herself in exactly that position, staircasing to 100% ownership in order to complete a same-day onward sale. She had been told she would need to pay SDLT on the staircasing, but something didn’t sit right.
So, she turned to Compass for clarity and it paid off.
The Client’s Situation
Our client was the owner of 75% of a shared ownership property.
She had agreed to sell the property but the buyer wanted to purchase 100% ownership. To enable the sale, she arranged to staircase to 100% on the same day as the sale.
She was advised that she would be liable to pay SDLT on the staircasing element but had her doubts. That’s when she asked Compass for a full review.
How Compass Uncovered the Right Answer
We reviewed the structure and timing of the transaction in detail. Because the staircasing to 100% and the onward sale were taking place on the same day, and were contractually linked, the transaction qualified for subsale (pre-completion transaction) relief under SDLT rules.
✅ Result: No SDLT payable by the client.
This meant that despite staircasing to full ownership, she was not liable for any additional stamp duty, as the transaction fell under the appropriate relief.
Why It Matters
This case highlights how easy it is for even experienced professionals to misinterpret SDLT liabilities especially in cases involving staircasing and subsale arrangements.
At Compass, our tax specialists are trained to identify these nuances and ensure our clients don’t overpay. In this instance, our client walked away with peace of mind, a completed sale, and zero SDLT liability.
Selling a shared ownership property and unsure about SDLT? Let us help.
Compass provides clear, compliant SDLT advice so you pay the right amount, no more, no less.