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HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
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Reliefs: Disadvantaged areas relief

General overview

Disadvantaged areas relief is a relief from Stamp Duty Land Tax (SDLT) for certain land transactions in designated disadvantaged areas.

From 17 March 2005, subject to transitional provisions, see SDLTM20110, disadvantaged areas relief applies only to transactions involving residential property in designated disadvantaged areas where the chargeable consideration does not exceed £150,000.

The legislation is at FA03/S57 and FA03/SCH6, which provide for the relief and FA03/S116 which sets out a statutory definition of residential property.

Following legislation at S227/SCH39/FA12, this relief will be abolished for transactions with an effective date on or after 6 April 2013.

All claims to relief for purchases of residential property where the effective date is before 6 April 2013 must be made on or before 5 May 2014. Claims made after that date cannot be accepted. This applies whether or not the claim is made in a land transaction return or an amendment of such a return.

The transitional provisions at PARA4/SCH9/FA05, which were introduced when disadvantaged areas relief for non-residential properties was abolished, will remain in force. These provisions apply to certain acquisitions of non-residential property in pursuance of a contract entered into on or before 16 March 2005.