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HMRC internal manual

Stamp Duty Land Tax Manual

Reliefs: Certain acquisitions of residential property

Acquisition by property trader from personal representatives FA03/SCH6A/PARA3

Where a property trader purchases a dwelling from the personal representatives of a deceased individual, the purchase will be exempt from Stamp Duty Land Tax if all of thefollowing conditions are met

  • the purchase is in the course of a business that consists of purchasing dwellings from the personal representatives of deceased individuals
  • the deceased individual occupied the dwelling as his main or only residence at some time in the two years ending with the date of his death and
  • the area of land acquired does not exceed the permitted area

Where the land acquired is more than the permitted area, as long as the first two 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 valueof the old dwelling including all the land.

Relief under this section will be withdrawn if the property trader:

  • spends more than the permitted amount on refurbishment of the dwelling or
  • grants a lease or licence of the dwelling or
  • permits any of its principals or employees, or any person connected with any of its principals or employees, to occupy the dwelling

See SDLTM21010 for definitions of the above criteria.