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HMRC internal manual

Stamp Duty Land Tax Manual

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HM Revenue & Customs
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Reliefs: Alternative property finance

Land sold to a financial institution and individual in common: Scotland: Generaloverview FA03/S72A

For land transactions where the land is in Scotland, relief is available where afinancial institution and individual purchase a property as owners in common.

The individual is granted a right to exclusive occupation by the financial institution.The individual has the right for the interest held by the financial institution to betransferred to them in one or multiple transactions.

As a series of land transactions take place under these arrangements the effect of therelief is to bring the stamp duty land tax payable on the purchase of a property usingthese arrangements in line with the tax that would be due where a purchase is made using aconventional mortgage product.

This parity is achieved by relieving the second, right to occupation, and further,transfer of the financial institution’s interest, transactions from stamp duty landtax and disapplying the substantial performance tests in FA03/S44 and options rules inFA03/S46.