Reliefs: Compulsory purchase facilitating development
General overview of FA03/S60
This provision gives relief where land is purchased following the making of acompulsory purchase order, in Northern Ireland a vesting order, for the purpose of facilitating development.
A typical scenario is where a local authority is supporting major development which requires the purchase of properties by the developer. The developer will usually attempt to acquire the properties by negotiation with the land-owners, but sometimes agreement is not reached.
The developer will then agree with the local authority for them to make a compulsorypurchase order.
Once a compulsory purchase order is obtained the developer may continue with negotiations but should these negotiations fail the local authority may purchase the land by way of the compulsory purchase order and subsequently sell the land to the developer.
As there are two purchases, one from the owner to the local authority and one from the local authority to the developer there would normally be two stamp duty land tax charges.
However the provision at FA03/S60 gives the local authority relief from stamp duty land tax on the first purchase, provided the conditions for relief are met.
This relief is only available where a party other than a local authority develops the land. If the developer is the local authority, there is no relief.