Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Stamp Duty Land Tax Manual

From
HM Revenue & Customs
Updated
, see all updates

Reliefs: Certain acquisitions of residential property

Acquisition by house-building company from individual acquiring new dwelling FA03/SCH6A/PARA1

Where a house-building company or a company connected with a house-building company

  • purchases a dwelling, the old dwelling
  • from an individual, whether that person acts alone or with other individuals
     

The purchase will be exempt from Stamp Duty Land Tax if all of the following conditionsare met

  • the individual
    • occupied the old dwelling as their main or only residence at some time in the period of two years ending with the date of the acquisition
    • acquires a new dwelling from the house-building company
    • intends to occupy the new dwelling as their only or main residence
       
  • each acquisition is entered into in consideration of the other
  • the area of land acquired by the house-building company does not exceed the permitted area
     

Where the land acquired by the house-building company is more than the permitted area,as long as the other conditions above are fulfilled partial relief may be claimed.

Where partial relief is claimed part of the consideration for the acquisition becomeschargeable.

The amount of chargeable consideration is the difference between the market value of thepermitted area, that is the old dwelling and grounds allowed, and the total market valueof the old dwelling including all the land.

See SDLTM21010 for definitions of the above criteria.