SDLTM28340 - Reliefs: Alternative property finance

Land sold to a financial institution and individual in common: Scotland: Further transactions FA03/S72A(4) and FA03/S72A(5)

Where

• the individual exercises the right, in the agreement, to require the financial institution to transfer the interest in the property (further transactions), and
• the property is transferred to that individual

relief from stamp duty land tax may be claimed by the individual if all the requirements relating to both the first and second transactions are complied with and at all times between the second and third transactions

• the chargeable interest purchased under the first transaction is held by a financial institution and the individual as owners in common
• the land is occupied by the individual who agreed the exclusive right occupation with the financial institution

The relief is not due

• if the financial institution transfers the property to a third party not involved in the original arrangements
• if during the time the arrangements were in place the property was not held by a financial institution and individual as owners in common

Additionally, relief is not available if that individual enters into the arrangements, or holds the lease or sublease, as partner and any of the other partners is not an individual