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HMRC internal manual

Stamp Duty Land Tax Manual

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HM Revenue & Customs
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Reliefs: Disadvantaged areas relief

Relief for non-residential property transactions before 17 March 2005

For transactions with an effective date before 17 March 2005, unlimited relief was available in respect of non-residential property including the non-residential element of mixed-use property situated in Enterprise Areas.

This included both the premium and rental element of leases.

For a definition of non-residential property please see SDLTM20070.

This relief remains available for:

  • the completion of contracts entered into and substantially performed on or before 16 March 2005
  • the completion or substantial performance of other contracts entered into on or before 16 March 2005, provided that

    • there is no variation of or assignment of rights under the contract after 16 March 2005
    • the transaction is not effected in consequence of the exercise after 16 March 2005 of an option, right of pre-emption or similar right
    • there is no assignment, sub-sale or other transaction after 16 March 2005 relating to all or part of the subject matter of the contract under which a person other than the contracting purchaser becomes entitled to call for a conveyance

Claims to relief on this basis are not precluded by the abolition of disadvantaged areas relief for transactions with an effective date on or after 6 April 2013 and are not time-limited.

Customers wishing to claim the former relief in respect of non-residential property are advised that this relief is subject to controls on State Aids under the EC Treaty.

If you are receiving or applying for State Aids from other sources, e.g. from a Regional Development Agency, you must ensure that the value of the relief claimed, cumulated with the value of any other State Aids received in respect of the same project, does not exceed the relevant Aid Intensity Ceiling.

Under European law exceeding the Ceiling may result in the recipient being required to repay the amount of the excess aid received, plus interest.

Recipients of other State Aids are advised to seek further advice from the relevant awarding body on this point.