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HMRC internal manual

Stamp Duty Land Tax Manual

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: trades involved in making a dwelling available to the public FA03/SCH4A/PARA5B

The 15 per cent higher rate charge will not apply to a transaction which meets the conditions set out below. Instead, SDLT will be charged at the higher rates for additional dwellings.

However, a further return and payment of additional SDLT will be required if the relevant rules in Withdrawal of relief (SDLTM09665) below apply.

For the transaction to be charged at the higher rates for additional dwellings the subject matter must include a higher threshold interest in respect of which the following conditions are met:

  • that the higher threshold interest is acquired with the intention that it will be exploited as a source of income in a qualifying trade, and
  • that reasonable commercial plans have been prepared to carry out that intention without delay (subject to delay caused by commercial considerations or which cannot be avoided).