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HMRC internal manual

Stamp Duty Land Tax Manual

Reliefs: Certain acquisitions of residential property

Acquisition by employer in case of relocation of employment FA03/SCH6A/PARA5

Where a dwelling is purchased from an individual, whether alone or with other individuals, by his employer, the purchase will be exempt from Stamp Duty Land Tax if all of the following conditions are met

  • the individual occupied the dwelling as his main or only residence at some time in the two years prior to the date of purchase
  • the purchase is made because the employee had to change residence due to a job relocation
  • the purchase price does not exceed the market value of the dwelling
  • the area of land acquired by the employer does not exceed the permitted area

Where it is determined that the land acquired is more than the permitted area, as long as the other conditions detailed 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.

Relocation of employment means a change of the individual’s place of employment due to the individual

  • becoming an employee of the employer
  • changing their duties with the employer
  • changing the place where they work for the employer

A change of residence is one arising from a relocation of employment if the change is made wholly or mainly to allow the individual to have their residence within a reasonable daily travelling distance of their new place of work.

The individual may need to change their place of residence because where they used to live is not within a reasonable daily travelling distance of their new place of work.

A new place of work means the place where the individual normally performs the duties oftheir employment after the relocation.