Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Stamp Duty Land Tax Manual

From
HM Revenue & Customs
Updated
, see all updates

Reliefs: Right to buy transactions, shared ownership leases etc: Rent to mortgage or rent to loan: Chargeable consideration FA03/SCH9/PARA6

The term rent to mortgage transaction is defined at subsection FA03/SCH9/PARA6(2) and rent to loan transaction is defined at FA03/SCH9/PARA6(4).

This paragraph also determines the chargeable consideration for these two types of transaction, rather than determining the consideration under FA03/SCH4.

Rent to mortgage

A rent to mortgage transaction means

  • the transfer of a dwelling to a person
  • the grant of a lease of a dwelling to a person

where that person is exercising a right to acquire on rent to mortgage terms under Part 5 of the Housing Act 1985.

The chargeable consideration for the transaction is the price that would be payable for

  • the transfer of the dwelling to the person (where the transaction is a transfer)
  • the grant of a lease of the dwelling to the person (where the transaction is the grant of the lease)

calculated in accordance with Section 126 of the Housing Act 1985 as it applies to rent to mortgage transactions.

Rent to loan

This applies in Scotland. A rent to loan transaction means the transfer of a heritable disposition in favour of a person where that person is exercising a right to purchase a house by way of the rent to loan scheme in Part 3 of the Housing (Scotland) Act 1987.

For these transactions, the chargeable consideration is equal to the price that would be payable for the house, calculated in accordance with Section 62 of the Housing (Scotland) Act 1987 as it applies to rent to loan transactions.