SDLTM20090 - Reliefs: Disadvantaged areas relief

Identifying whether land is within a qualifying area (Enterprise Area)

Areas which qualify for relief FA03/SCH6/PARA1, FA03/SCH6/PARA2 & SI2001/3747

Identifying whether land is within a qualifying area (Enterprise Area)

Areas which qualify for relief FA03/SCH6/PARA1, FA03/SCH6/PARA2 & SI2001/3747

The qualifying areas include

• land in England which at 7 May 1998 fell within a ward or electoral division listed in the Index of Multiple Deprivation 2000;
• land in Wales which at 1 April 1998 fell within an electoral division contained in the Welsh Index of Multiple Deprivation 2000.
• land in Scotland which at 21 April 1991 had a postcode contained in Revising the Scottish Area Deprivation Index, or
• land which, at 27th November 2001, had the same full postcode as land which met any of the previous conditions.

The qualifying areas are based on historical rather than current boundaries. Changes to wards, electoral divisions and postcodes after 27th November 2001 are not taken into account.

Complete lists of qualifying areas are included in the Stamp Duty (Disadvantaged Areas) Regulations 2001 (SI2001/3747) and are available on the HM Revenue & Customs website. In addition the website includes a postcode search tool which links current postcodes to qualifying areas.

Land only partly within a qualifying area FA03/SCH6/PART3

Where a property straddles two or more wards, of which at least one qualifies for relief and at least one does not, the consideration must be apportioned on a just and reasonable basis between qualifying and non-qualifying areas.

Relief will apply only to the consideration apportioned to the qualifying areas according to whether, and to what extent, it relates to residential property.

For guidance on just and reasonable apportionments by virtue of FA03/SCH4/PARA4 see SDLTM04000.

Such cases are relatively rare in practice. Queries may be referred to HMRC Stamp Taxes for guidance. In the first instance please contact the Stamp Taxes Helpline on 0845 603 0135 (available 08.30 – 17.00 Monday – Friday).