Q&As

My client is purchasing a large development in tranches. Can my client claim multiple dwellings relief on some of the development and apply the commercial rates of stamp duty land tax to other parts of the development or must the same rate apply for the entire development as each tranche will be linked with the other tranches?

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Produced in partnership with Charles Goddard of Rosetta Tax
Published on LexisPSL on 21/02/2018

The following Tax Q&A produced in partnership with Charles Goddard of Rosetta Tax provides comprehensive and up to date legal information covering:

  • My client is purchasing a large development in tranches. Can my client claim multiple dwellings relief on some of the development and apply the commercial rates of stamp duty land tax to other parts of the development or must the same rate apply for the entire development as each tranche will be linked with the other tranches?

My client is purchasing a large development in tranches. Can my client claim multiple dwellings relief on some of the development and apply the commercial rates of stamp duty land tax to other parts of the development or must the same rate apply for the entire development as each tranche will be linked with the other tranches?

Stamp duty land tax (SDLT) applies to chargeable land transactions. A land transaction is an acquisition of a chargeable interest (sections 42–43 of the Finance Act 2003 (FA 2003)).

Transactions are ‘linked’ for the purposes of the SDLT if they form part of a single series of transactions between the same vendor and purchaser or, in either case, persons connected with them (FA 2003, s 108). However, it is clear that just because transactions are linked, they are not treated as the same transaction. FA 2003, s 108(2) specifies that ‘Where there are two or more linked transactions with the same effective date, the purchaser may make a single land transaction return as if all of those transactions that are notifiable were a single notifiable transaction’. This ability to make a single land transaction return is at the choice of the purchaser. If the purchaser opts to do so, the transaction return may be made as if the transactions were a single transaction, which implies that they are not

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