For land transactions where the land is in Scotland, relief is
available where a financial institution and individual purchase a
property as owners in common.
The individual is granted a right to exclusive occupation by
the financial institution. The individual has the right for the
interest held by the financial institution to be transferred to
them in one or multiple transactions.
As a series of land transactions take place under these
arrangements the effect of the relief is to bring the stamp duty
land tax payable on the purchase of a property using these
arrangements in line with the tax that would be due where a
purchase is made using a conventional mortgage product.
This parity is achieved by relieving the second, right to
occupation, and further, transfer of the financial
institution’s interest, transactions from stamp duty land tax
and disapplying the substantial performance tests in FA03/S44 and
options rules in FA03/S46.
