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HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
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Reliefs: Right to buy transactions, shared ownership leases etc: Conditions the shared ownership lease must fulfil FA03/SCH9/PARA2 & PARA 4

The term “shared ownership lease” is not defined in SDLT legislation. However, in order to benefit from the special treatment for shared ownership leases under FA03/SCH9 the lease must meet all of the following general conditions.

The lease must be granted either by a qualifying body or in pursuance of a preserved right to buy.

Qualifying bodies are

  • a local housing authority
  • a housing association
  • a housing action trust
  • the Northern Ireland Housing Executive
  • the Commission for the New Towns or
  • a development corporation.

A lease is granted in pursuance of a preserved right to buy where

  • the lessor is a person against whom the right to buy (under Part 5 of the Housing Act 1985) is exercisable by virtue of section 171A of that Act
  • the lessee is (or lessees are) the qualifying person(s) for the purposes of the preserved right to buy and
  • the lease is of a dwelling that is the qualifying dwelling-house in relation to the lessee.

The lease must be of a dwelling and must give the lessee (or lessees) exclusive use of the dwelling.

Further conditions apply to shared ownership leases, depending on the detailed terms of the lease: see SDLTM27030