Do you pay stamp duty on a shared ownership home?

Updated 9 November 2026 · Rates checked against the official sources below

Often not much, but it depends on a choice you make when you buy: pay in stages on each share you buy, or make a 'market value election' and pay once, upfront, on the full value of the home.

Option 1: pay in stages

You only pay SDLT on the share you buy if that share's price is over the threshold that applies to you. You may also owe SDLT on the rent if the lease's 'net present value' of rent is over £125,000, which is uncommon. When you buy more shares (staircasing) you don't pay any more SDLT until your total share goes above 80%.

Option 2: market value election

You pay SDLT once, at the start, on the full market value of the home, as if you'd bought 100%. After that there's nothing more to pay when you staircase, and the rent isn't taxed. First-time buyers often choose this, because with first-time buyer relief a full value up to £300,000 means £0 to pay.

First-time buyer relief

First-time buyers can claim relief on shared ownership whichever option they choose, as long as the full market value is £500,000 or less.

Which is better?

If the full value is low enough that the market value election costs little or nothing, it usually avoids a bill later when you staircase above 80%. If you never expect to own more than 80%, paying in stages may cost less. The election must be made in the SDLT return and can't be undone, so ask your conveyancer to run both numbers.

Our calculator works out the tax on a full purchase. For shared ownership, enter the full market value to see the market value election figure, or the share price to see the first stage.

Try it with your numbers:

Sources

General information, not tax or legal advice. Rules can change; check gov.uk or ask a conveyancer, accountant or Acas before you rely on it.