SDLTM21030 - Reliefs: Certain acquisitions of
residential property
Acquisition by property trader from individual acquiring new
dwelling FA03/SCH6A/PARA2
Where a property trader
- purchases a dwelling, the old
dwelling
- from an individual, whether that person
acts alone or with other individuals
The purchase will be exempt from Stamp Duty Land Tax if all of
the following conditions are met
- the purchase is in the course of a
business that consists of or includes acquiring dwellings from
individuals who have acquired a new dwelling from a house building
company
- the individual
- occupied the old dwelling as their main or only
residence at some time in the two years prior to the date of the
acquisition
- acquires a new dwelling from a house-building
company
- intends to occupy the new dwelling as their only
or main residence
- the area of land acquired by the property
trader does not exceed the permitted area
Where the land acquired by the property trader is more than the
permitted area, as long as the other conditions above are fulfilled
partial relief may be claimed.
Where partial relief is claimed, part of the consideration
for the acquisition becomes chargeable.
The amount of chargeable consideration is the difference
between the market value of the permitted area, that is the old
dwelling and grounds allowed, and the total market value of the old
dwelling including all the land.
Relief under this section will be withdrawn if the property
trader
- spends more than the permitted amount on
refurbishment of the old dwelling
- grants a lease or licence of the old
dwelling
- permits any of its principals or
employees, or any person connected with any of its principals or
employees, to occupy the old dwelling
See
SDLTM21010 for definitions of the
above criteria.
N.B. when the effective date of a land transaction occurs
after 22 July 2004 and the property trader
- intends to grant a lease or licence to the
individual to occupy the old dwelling for no more than six
months
- grants such a lease or licence after the
acquisition of the old dwelling
this relief will not be unavailable or withdrawn.
