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HMRC internal manual

Stamp Duty Land Tax Manual

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HM Revenue & Customs
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Reliefs: Compliance with planning obligations

Planning obligations and modifications: Detailed rules

Where a land transaction is undertaken to comply with a planning obligation or amodification of a planning obligation, the purchaser may claim relief from Stamp Duty LandTax on that transaction, if certain conditions are fulfilled.

This relieves defined classes of public authorities from having to pay Stamp Duty Land Taxin these circumstances.

Planning obligation

A planning obligation is defined

  • for England and Wales as
    • within the meaning of Section 106 of the Town and Country Planning Act 1990 which is entered into in accordance with subsection 9 of that section
    • as defined by Section 299A of the Town and Country Planning Act 1990 which is entered into in accordance with subsection 2 of that section

 

  • For Northern Ireland a planning agreement within the meaning of Article 40 of the Planning (Northern Ireland) Order 1991 that is entered into in accordance with paragraph 10 of that Article
  • For Scotland as an agreement made under Section 75 or Section 246 of the Town and Country Planning (Scotland) Act 1997

 

A modification of a planning obligation is defined

  • for England and Wales as a modification mentioned in Section 106A(1) of the Town and Country Planning Act 1990
  • for Northern Ireland as a modification as mentioned in Article 40A(1) of the Planning (Northern Ireland) Order 1991 (1991/1220 (N.I.11))