Reliefs: Compulsory purchase facilitating development
England, Scotland and Wales: Detailed rules
Where the purchase of a chargeable interest is by way of a compulsory purchase ordermade by the purchaser, the purchaser may claim relief from Stamp Duty Land Tax, if thepurchase is to facilitate development by a third party.
In order to obtain relief, the purchaser must be the person who made the compulsorypurchase order. This would usually be the local planning authority.
Any subsequent transfer of the chargeable interest to the third party is subject to StampDuty Land Tax in the normal way.
Effected by agreement
As long as the other conditions are fulfilled, it does not matter if the purchase ispart of an agreement between the vendor and a third party.
Should the vendor agree to sell the land, and agree a price with the third party, as longas the subsequent sale, to the maker of the compulsory purchase order, is the subject of acompulsory purchase order the fact that there is an agreement as to terms is not a bar toobtaining the relief.
Development by third party
The purchase must be made to facilitate development of the land by a third party (thatis, someone other than the maker of the compulsory purchase order) The term developmenthas the same meaning
- for England and Wales as in Section 55 of the Town and Country Planning Act 1990
- for Scotland as in Section 26 Town and Country Planning (Scotland) Act 1997