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HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
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Reliefs: Alternative property finance

Land sold to a financial institution and leased to an individual: Scotland : The thirdtransaction FA03/S72(4) and FA03/S72(5)


  • the individual exercises the right in the agreement to require the financial institution to transfer the title to the property, the third transaction, and
  • the property is transferred to that individual

relief from stamp duty land tax may be claimed by the individual if all therequirements relating to both the first and second transactions are complied with and atall times between the second and third transactions

  • the chargeable interest purchased under the first transaction is held by a financial institution
  • the lease, or sublease, granted under the second transaction is held by the individual

The relief is not due

  • if the financial institution transfers the property to a third party not involved in the original arrangements
  • if during the time the arrangements were in place the property was not held by a financial institution
  • if the individual did not hold the lease, or sublease

Additionally, relief is not available if that individual

  • enters into the arrangements, or holds the lease or sublease, as a trustee and any beneficiary of the trust is not an individual
  • enters into the arrangements, or holds the lease or sublease, as partner and any of the other partners is not an individual