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HMRC internal manual

Stamp Duty Land Tax Manual

From
HM Revenue & Customs
Updated
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Reliefs: Disadvantaged areas relief

The relief FA03/SCH6/PARA5

Relief is available on transactions involving residential property in designated disadvantaged areas, where the effective date of the transaction is on or after 1 December 2003 and before 6 April 2013 and the chargeable consideration does not exceed £150,000.

For grants of residential leases where the effective date is on or after 12 March 2008, relief is available separately

  • on any premium, where the premium does not exceed £150,000 and
  • on the rent, where the net present value (NPV) of the rent does not exceed £150,000.

 

For grants of residential leases where the effective date is on or after 1 December 2003 and before 12 March 2008, relief is available separately

  • on any premium, where the premium does not exceed £150,000 and the annual rent does not exceed £600 and
  • on the rent, where the net present value (NPV) of the rent does not exceed £150,000.

 

In this case, if the annual rent exceeds £600, the £150,000 threshold is disapplied from the premium and the whole of the premium is chargeable to stamp duty land tax at normal rates.

For relief on transactions involving non-residential property where the effective date was on or after 1 December 2003 and before 17 March 2005, see SDLTM20110.