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HMRC internal manual

Stamp Duty Land Tax Manual

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 conditions are 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 becomes chargeable.

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

See SDLTM21010 for definitions of the above criteria.