This Practice Note explains what a stamp duty land tax (SDLT) group is, and it sets out the conditions that must be satisfied to form an SDLT group, the entities which can form part of an SDLT group and arrangements which can break an SDLT group. This matters because an exemption from (SDLT) can be claimed where an interest in land is acquired (a land transaction) by one body corporate (referred to as the purchaser in the legislation) from another body corporate (referred to as the vendor in the legislation) provided that, at the effective date of the land transaction: • both bodies corporate are members of the same SDLT group, and • the anti-avoidance provisions do not apply to bar relief See Practice Note: SDLT group relief for more information. Even if a transaction legitimately qualifies for relief, certain post-transaction events can result in all, or a proportionate part of, the relief being clawed back. See Practice Note: Clawback of SDLT group relief for more detail. SDLT ceased to apply to any land transaction involving

Multiple dwellings relief (MDR) applies to certain transactions that involve an acquisition of at least two dwellings or an acquisition of one dwelling that is linked to an acquisition of another dwelling where the effective date of the land transactions in question falls before 1 June 2024 (subject to transitional provisions). When MDR applies, the total consideration for the dwellings is divided by the number of dwellings acquired to find the average price. Stamp duty land tax (SDLT) is then calculated by reference to that average price instead of the total consideration and the total SDLT payable is equal to the SDLT liability on the average price multiplied by the number of dwellings acquired (subject to an effective minimum rate of 1%). This means that the SDLT payable is the same as it would have been had each dwelling been acquired individually and not with other dwellings. 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)

Tax analysis: In Ladson Preston and AKA Developments v HMRC, the First-tier Tribunal (FTT) (Tax Chamber) held that multiple dwellings relief (MDR) did not apply to either an acquisition of land with planning permission or an acquisition of commercial buildings with planning permission where the buyer had dug bore holes. These two cases have been designated as lead appeals with two groups of appeals stayed behind them.

This Practice Note considers the steps to take in relation to SDLT once it is established that there is a chargeable transaction. For details about the definition of a land transaction, what amounts to the acquisition of a chargeable interest and when a chargeable transaction arises, see Practice Note: Land transactions, chargeable interests and chargeable transactions. For further details on how to notify land transactions, see Practice Note: SDLT—administration and compliance. 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

This Practice Note looks at the way that options and pre-emption agreements over UK land are treated for stamp duty land tax (SDLT) purposes. Options typically arise in development situations but are also used in other transactions. For more on indirect tax in the context of commercial developments, see Practice Note: Development of commercial property—indirect tax considerations. 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 interests 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.

It was established under the stamp duty rules that relief should be available to a person who has contracted to buy an interest in land but contracts to sell or assign the rights under the contract before the contract is completed. This rule was transposed into the stamp duty land tax (SDLT) regime in section 45 of the Finance Act 2003 (FA 2003) (as originally enacted). The section effectively prevented a charge that would otherwise have arisen on an acquisition of a chargeable interest at the same time as a disposal of the same interest to another person. This was primarily used for sub-sales, but the original provision referred to the 'transfer of rights' and hence it also applied to other transactions, including an assignment of rights. However, this section was used in a number of SDLT planning structures for both commercial and residential properties. The use of this provision in SDLT planning structures was considered in a number of cases including DV3, Allchin and Vardy. Parliament and HMRC took the view that this provision was being

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) (for further details, see Practice Note: Land transactions, chargeable interests and chargeable transactions). Exemption from SDLT is available for corporate entities under the reconstruction relief provisions and a reduced rate of SDLT is available to corporate entities under the acquisition relief provisions as further detailed in this Practice Note. 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 interests in

Once it has been determined that a transaction is subject to SDLT, there should be consideration as to whether any reliefs or exemptions are available to reduce or extinguish any liability for SDLT. This Practice Note summarises certain reliefs available from SDLT for public and social purposes. For general SDLT reliefs and exemptions (including charities relief), see Practice Note: SDLT—general reliefs and exemptions. For information on how to determine whether a transaction is subject to SDLT, see Practice Notes: Land transactions, chargeable interests and chargeable transactions and SDLT—notifiable transactions. This Practice Note summarises the following reliefs from SDLT: • compulsory purchase facilitating development • purchases by public authorities in connection with planning agreements • statutory reorganisations and transfers between public bodies • acquisitions by relevant housing providers, and • acquisitions by bodies established for national purposes 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,

The amount of stamp duty land tax (SDLT) charged in relation to a chargeable transaction is a percentage of the chargeable consideration for the transaction. The percentage is determined by reference to whether the relevant land: • consists entirely of residential property, in which case the rates, and related calculation method, in Table A (titled 'Residential) apply, or • consists of, or includes, land that is not residential property (referred to as non-residential property in this Practice Note), in which case the rates, and related calculation method, in Table B (titled 'Non-residential or mixed') apply Tables A and B are set out in section 55(1B) of the Finance Act 2003 (FA 2003), see Practice Note: Rates of SDLT. There are two versions of Table A. The second version is set out in FA 2003, Sch 4ZA Pt 1, para 1(2) and applies when a non-natural person acquires residential property or when an individual acquires a second residential property where an only or main residence is not being replaced. For more detail,

Why are the SDLT anti-avoidance provisions important? The stamp duty land tax (SDLT) anti-avoidance provisions set out in section 75A of the Finance Act 2003 (FA 2003) were originally introduced in the Pre-Budget Report 2006 and subsequently enacted in primary legislation by the Finance Act 2007 in an extended format comprising FA 2003, ss 75A–75C (referred to collectively throughout this Practice Note as 's 75A'). These provisions were introduced to combat the seemingly large number of SDLT planning structures which were being implemented in relation to both commercial and residential land transactions in the UK. The provisions apply for disposals on or after 6 December 2006, subject to transitional provisions. Rather than shut down SDLT planning schemes on a structure-by-structure basis by changing specific provisions of the SDLT legislation, the decision was made to introduce a 'mini general anti-avoidance rule' specific to SDLT (the SDLT GAAR). One of the reasons given for taking this approach was to combat not only current SDLT planning structures but also those which may be created in the future. As discussed

Stamp duty land tax (SDLT) is charged on chargeable land transactions (the acquisition of a chargeable interest). For further guidance on how SDLT operates and its basic principles, see Practice Note: Land transactions, chargeable interests and chargeable transactions. Land and buildings transaction tax (LBTT) replaced SDLT in Scotland with effect from 1 April 2015. See Practice Note: Scotland: Land and buildings transaction tax (LBTT)—the basics. Land transaction tax (LTT) replaced SDLT in Wales with effect from 1 April 2018. See Practice Note: Wales: Land transaction tax (LTT)—the basics. Consequently, references in this Practice Note to land or property or similar expressions in the context of the application of SDLT should be read to exclude any interest in or over land in Scotland (from 1 April 2015) and Wales (from 1 April 2018). The first part of this Practice Note looks at how transactions during a marriage or civil partnership are treated for SDLT purposes. The second part of this Practice Note looks at how certain transactions made in connection

Stamp duty land tax (SDLT) is charged on chargeable land transactions (the acquisition of a chargeable interest). For further guidance on how SDLT operates, see Practice Note: Land transactions, chargeable interests and chargeable transactions. Land and buildings transaction tax (LBTT) replaced SDLT in Scotland with effect from 1 April 2015. See Practice Note: Scotland: Land and buildings transaction tax (LBTT)—the basics. Land transaction tax (LTT) replaced SDLT in Wales with effect from 1 April 2018. See Practice Note: Wales: Land transaction tax (LTT)—the basics. Consequently, references in this Practice Note to land or property 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) and Wales (from 1 April 2018). A land transaction is not chargeable for the purposes of SDLT if it is exempt. The transactions described below relating to dispositions by Will and intestacy are exempt and are not notifiable (for more guidance on notifiable transactions, see Practice Note: SDLT—notifiable transactions). Entitlement