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HMRC internal manual

Stamp Duty Land Tax Manual

From
HM Revenue & Customs
Updated
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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: withdrawal of relief - trades involved in making a dwelling available to the public

Withdrawal of relief will occur where one of the following conditions is not met within the three year control period

  • the higher threshold interest is held by the purchaser and is being exploited as a source of income in the course of a qualifying trade, and
  • any chargeable interest derived from that higher threshold interest that is held by the purchaser is being exploited as a source of income in the course of a qualifying trade.

Withdrawal will also occur if, during the control period, the activities in relation to the business have not yet begun, or the business has ceased, and reasonable steps are not being taken to ensure that the property acquired is to be actively exploited as a source of income in a qualifying trade.