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I would like to fully understand the following passage from https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property :

You must pay the higher Stamp Duty Land Tax (SDLT) rates when you buy a residential property (or a part of one) for £40,000 or more, if all the following apply:

it will not be the only residential property worth £40,000 or more that you own (or part own) anywhere in the world

you have not sold or given away your previous main home

no one else has a lease on it which has more than 21 years left to run

Question. Suppose the buyer in question owns half of one property (and that's it). Moreover, the whole property worth £50,000 (so its half worth £25,000). If they buy a flat in the UK (for >£40k) do they need to pay higher SDLT according to this passage?

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    You part own a property worth £40,000 or more. What's unclear?
    – Robert Longson
    Commented Oct 26, 2021 at 20:47
  • Robert, thanks for the answer! I really beg you pardon, English is not my native language. I was not able to understand the following sentence: "when you buy a residential property (or a part of one) for £40,000 or more". Unfortunately I don't understand your comment either. Do I need to pay a higher tax or not?... I am really, really sorry... But I want to understand the answer to my question. Would you be kind to write a definite answer, either as a comment of as a full answer?
    – aglearner
    Commented Oct 26, 2021 at 22:01
  • It seems to me that you hint that I will need to pay higher SDLT, correct?
    – aglearner
    Commented Oct 26, 2021 at 22:02
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    @aglearner yes, that is what the wording means.
    – Vicky
    Commented Oct 26, 2021 at 22:33
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    Thanks a lot Vicky! Just for the record. When I was reading this phrase, I was seeing two possible meanings. a) I should not have a share of a property, such that the value of this share is >40K. b) I should not have a share of a property in a property whose (full) value is >40K. Depending on whether the phrasing means a) or b) the answer to my question is either "yes" or "no". Thanks for confirming that the answer to my question is yes. Which means, that I need indeed to pay higher SDLT.
    – aglearner
    Commented Oct 26, 2021 at 22:57

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I decided to call to SDLT helpline to double check with them what is the answer to my question. The answer is NO I don't need to pay higher rates . The explanation is given in the following link:

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09780

Here is a citation from this page with a clear example:

Example

A jointly owns a buy-to-let property with 4 friends. The property is worth £150,000, with A’s share being worth £30,000. A currently lives with her parents but is now looking to purchase a home to live in. A will not have to pay the higher rates of SDLT because A’s share of the buy-to-let property is under £40,000.

So the answer to my question is NO, because my share is worth £25K which is less than £40K.

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