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HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
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Scope: when is Stamp Duty Land Tax (SDLT) chargeable: higher rate charge for acquisitions of residential property by certain non-natural persons FA03/S55/SCH4A: property rental businesses FA03/SCH4A/PARA5

Where the acquisition of a chargeable interest is exclusively for the purpose of exploitation as a source of rents or other receipts in the course of a qualifying property rental business, the 15 per cent higher rate charge will not apply to the transaction. Instead, SDLT will be charged at the standard rates.

However, a further return and payment of additional SDLT will be required if the relevant rules in Withdrawal of relief (SDLTM09660) below apply.

In order to be a qualifying property rental business, the business must meet two conditions

  • it must be a property rental business as defined in Chapter 2 of Part 4, CTA 2009 (excluding the condition that the profits are chargeable to corporation tax - see PIM1020 onwards for more information), and
  • it must be carried on a commercial basis and with a view to a profit.