BN25: Stamp Duty Land Tax: surplus school land

Who is likely to be affected?

  1. Governing bodies, foundation bodies and trustees of foundation, voluntary and foundation special schools, local education authorities (LEAs) and their agents.

General description of the measure

  1. Repeal of obsolete stamp duty and stamp duty land tax relief for transfers of surplus school land. A Treasury Order will be made to bring such transfers within the general stamp duty land tax relief for statutory reorganisations.

Operative date

  1. Repeals will be operative from the date on which Finance Bill 2007 receives Royal Assent. The Order will come into force on 25 May 2007, in line with amended provisions for transfers of surplus school land introduced by the Education and Inspections Act 2006.

Current law and proposed revisions

  1. Schedule 22 to the Education and Inspections Act 1998 makes various provisions for transfers of surplus school land between governing bodies, foundation bodies, trustees and LEAs. Section 79 of that Act provides stamp duty relief, and section 79A provides stamp duty land tax (SDLT) relief, for these transfers.
  2. The stamp duty relief is now obsolete. Part 1 of Schedule 4 to the Education and Inspections Act 2006 amends various provisions of Schedule 22 to the 1998 Act and section 27 of the 2006 Act introduces a new provision for transfers in connection with the removal of a foundation. The SDLT relief at section 79A of the 1998 Act will not cover these amended and new provisions.
  3. All of these transactions can potentially qualify for SDLT relief under the general provision for statutory reorganisations at section 66 of Finance Act 2003. Some transfers will qualify automatically, while others will qualify if the statutory provisions under which they are made are prescribed by Treasury Order under section 66(2).
  4. Finance Bill 2007 will include clauses repealing sections 79 and 79A of the 1998 Act. A Treasury Order will be made in early May under powers in section 66(2) of Finance Act 2003 to bring transfers under the amended provisions of Schedule 22 to the 1998 Act, and regulations made under section 27 of the 2006 Act, fully within the relief at section 66 of Finance Act 2003.

Further advice

  1. If you have any questions about this change, please contact the Stamp Taxes Helpline. Information about Budget measures is available on the HM Revenue & Customs website.