HMRC internal manual

Stamp Duty Land Tax Manual

SDLTM21570 - Relief for the transferor

Relief for the transferor is given by paragraphs 15-18 of FA03/SCH2A. The transferor can claim full relief for its land transaction in certain circumstances. For relief to be available, the pre-completion transaction must be an assignment of rights or a subsale. There are separate reliefs for assignments (paragraph 15) and for subsales (paragraph 16).

For a subsale, the original contract must be substantially performed or completed at the same time as and in connection with the substantial performance or completion of the subsale contract. Partial relief is available where the assignment or subsale relates to only part of the land that is the subject of the original contract. Relief must be claimed in a land transaction return, or an amendment to such a return. The time limit for amending a land transaction return is twelve months from the filing date for the return (paragraph 6 of FA03/SCH10). Relief code 34 should be entered in the appropriate box of the land transaction return.

Relief is barred where it is reasonable to conclude that the transferor had a main purpose of securing a tax advantage for any person. In the definition of tax advantage, ‘tax’ refers only to SDLT and not other taxes.