Generally, subject to exemptions or reliefs, an acquisition of a chargeable interest in land (a land transaction), which includes the grant of a leasehold interest, is subject to stamp duty land tax (SDLT). An exemption from SDLT can be claimed where: • a land transaction is entered into between two bodies corporate that are, as at the SDLT—effective date of the transaction (usually completion), members of the same SDLT group • the anti-avoidance provisions do not apply to bar relief, and • SDLT group relief is claimed on the relevant land transaction return, SDLT1 using code 12 Although no supporting documents accompany the claim, the claimant purchaser must still retain evidence to prove its entitlement to SDLT group relief since HMRC may enquire into the validity of the claim for relief up to nine months after: • the filing date of the land transaction return (ie due date for filing a return), if the return is delivered on or before such date • the date on which the land transaction return was delivered (if delivered after the filing

A worktop and units in a garage were part of the land, not chattels. The consideration for them formed part of the chargeable consideration for the land on which stamp duty land tax was payable, pushing the consideration over £250,000 into the 3% bracket.

Private Client analysis: John Shallcross, associate at Blake Morgan, examines a First-tier Tax Tribunal (FTT) decision that relief from stamp duty land tax (SDLT) charged at 15% on the purchase by corporate bodies of residential properties for more than £500,000 is only available if the property continued to be a ‘dwelling’ once the property was made available to the public. The FTT concluded that the appellant company was not entitled to relief (under paragraph 5B of Schedule 4A to the Finance Act 2003 (FA 2003)) on its purchase of a residential property for £645,000 in 2015 to be converted into a bed and breakfast.

SDLT In order for stamp duty land tax (SDLT) to be due there must be a chargeable land transaction. The purchaser will need to assess whether the transfer is a chargeable land transaction to establish the SDLT consequences of it. A land transaction is an acquisition of a chargeable interest (section 43 of the Finance Act 2003 (FA 2003)). The term acquisition is not defined in the SDLT legislation, but the legislation provides that there does not have to be an instrument effecting the transaction (FA 2003, s 42). SDLT is a transactional tax rather than a document based tax. This means that, although the method of acquisition is key for UK property land purposes, it is not important for SDLT purposes. For further detail on the meaning of land transactions, see Practice Note: Land transactions, chargeable interests and chargeable transactions. A land transaction is chargeable if

This Practice Note on Islamic finance and tax outlines the stamp duty land tax (SDLT) relief for alternative property finance arrangements (APFA) provided by section 71A of the Finance Act 2003, using a musharaka or diminishing shared ownership arrangement over land situated in England to illustrate its application. A musharaka is a form of Islamic financing that operates as a form of shared ownership arrangement and is therefore similar to a partnership or joint venture structure. It can be used as a Shari’a-compliant alternative to acquiring land using a mortgage (see an example below at: SDLT consequences of the first transaction) or as a way of refinancing an existing loan secured over land. For more information on musharaka, see Practice Notes: • Musharaka—tax consequences of diminishing shared ownership arrangements—what is musharaka? • The structure and elements of a Musharaka transaction Where land is situated in England or Northern Ireland, the stamp duty land tax (SDLT) relief that is most relevant to a musharaka is set

Tax analysis: In Hyman and another v HMRC the Court of Appeal agreed with the Upper Tribunal (UT) and held that land that is or forms part of the garden or grounds of a dwelling is not limited by a requirement that it is for the reasonable enjoyment of the dwelling. The extensive grounds of the two dwellings in this case were held to be residential property for stamp duty land tax (SDLT) purposes and attracted the higher residential rates of SDLT.

This Practice Note summarises the stamp duty land tax (SDLT) compliance regime and gives an overview of the sanctions that may be imposed by HMRC in various circumstances including late payment of SDLT, late submission of returns and incomplete returns. It also provides information on the powers of HMRC to make enquiries and assessments. SDLT ceased to apply to any land transaction involving any interests in or over land in Scotland from 1 April 2015. From that date, land and buildings transaction tax (LBTT) applies to such transactions, subject to transitional provisions. For further details, see the LBTT subtopic. SDLT ceased to apply to any land transaction involving any interest in or over land in Wales from 1 April 2018. From that date, land transaction tax (LTT) applies to such transactions, subject to transitional provisions. For further details, see the Wales: LTT subtopic. Periods for delivering returns and paying SDLT It is the duty of the purchaser of land interests in England and Wales to notify HMRC about every notifiable transaction within 14 or 30 days after the effective

This Practice Note provides an overview of the stamp duty land tax (SDLT) treatment of the following common lease transactions: • grant of a lease • linked leases • surrender and re-grant of a lease • agreement for lease • assignment of an agreement for lease • reverse premium • assignment of a lease • variation of a lease • surrender of a lease • lease to a bare trustee or nominee, and • reversionary lease For information on when SDLT applies generally, see Practice Note: SDLT—land transactions, chargeable interests and chargeable transactions and for details of how to calculate SDLT payable on lease transactions, see Practice Note: SDLT chargeable consideration—leases. This Practice Note does not cover leases and holding over. For more on this topic, see Practice Note: SDLT—holding over. SDLT ceased to apply to any land transaction involving any interests in or over land in Scotland from 1 April 2015. From that date, land and buildings transaction tax (LBTT) applies to such transactions, subject to transitional provisions. Consequently, references in this Practice

Most deeds of rectification in the context of property will effect a land transaction for stamp duty land tax (SDLT) purposes, for example, where the deed transfers land or creates a right of way that was mistakenly left out of the original deed. This Practice Note looks at the SDLT notification and calculation provisions applicable to common matters dealt with in deeds of rectification, such as the extent of land being corrected, the grant or variation of easements or covenants and lease rectification issues. SDLT ceased to apply to any land transaction involving any interests in or over land in Scotland from 1 April 2015. From that date, land and buildings transaction tax (LBTT) applies to such transactions, subject to transitional provisions. Consequently, references in this Practice Note to 'UK land' or similar expressions in the context of the application of SDLT should be read to exclude any interests in or over land in Scotland from 1 April 2015. For further details, see the LBTT subtopic. SDLT ceased to apply to any land transaction involving any interest

FORTHCOMING CHANGE: At Budget 2025, the government announced that it will amend SDLT rules so that properties transferred within the Local Government Pension Scheme are subject to an SDLT relief. This measure will be included in Finance Bill 2026–27. See News Analysis: Budget 2025—Tax analysis—Real estate tax. Once it has been determined that there is a land transaction for stamp duty land tax (SDLT) purposes, it should be considered whether any reliefs or exemptions are available to reduce or extinguish any liability to pay SDLT. This Practice Note summarises the following general reliefs and exemptions: • sale and leaseback relief • overlap relief • alternative finance reliefs • charities relief • relief on incorporation of limited liability partnerships (LLPs) • property authorised investment funds (PAIF) and co-ownership contractual schemes seeding relief, and • other general reliefs Other SDLT reliefs include: • group relief, see Practice Note: SDLT group relief • multiple dwellings relief (where the effective date is before 1 June 2024, subject to transitional provisions), see Practice Note: SDLT—multiple dwellings relief • reconstruction and acquisition

The stamp duty land tax (SDLT) rules that apply when a tenant holds over a lease are complex. The rules have been amended since SDLT was first introduced and different rules can apply to particular scenarios with different results. The rules that apply depend on, among other considerations: • whether the original lease was a stamp duty or SDLT lease (ie subject to stamp duty or SDLT when it was granted) • when the original lease was granted • when the original lease terminated • when the new lease is granted, and • when the term of the new lease is expressed to begin The rules are contained in paragraphs 3, 3A and 9A of Schedule 17A to the Finance Act 2003 (FA 2003). SDLT ceased to apply to any land transaction involving any interests in or over land in Scotland from 1 April 2015. From that date, land and buildings transaction tax (LBTT) applies to such transactions, subject to transitional provisions. Consequently, references in this Practice Note to 'UK land' or similar expressions in the context

Stamp duty land tax (SDLT) is charged on chargeable land transactions. Consequently, the concept of a land transaction and what this encompasses is central to the application of SDLT to transactions involving UK land. This Practice Note considers the meaning of land transaction and its constituent elements, including: • the acquisition of a chargeable interest, and • when a chargeable transaction arises SDLT ceased to apply to any land transaction involving any interests in or over land in Scotland from 1 April 2015. From that date, land and buildings transaction tax (LBTT) applies to such transactions, subject to transitional provisions. Consequently, references in this Practice Note to 'UK land' or similar expressions in the context of the application of SDLT should be read to exclude any interests in or over land in Scotland from 1 April 2015. For further details, see the LBTT subtopic. SDLT ceased to apply to any land transaction involving any interest in or over land in Wales from 1 April 2018. From that date, land transaction tax (LTT) applies