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HMRC internal manual

Stamp Duty Land Tax Manual

Reliefs: Alternative property finance

Land sold to financial institution and re-sold to a person: General overviewFA03/S73

Where a financial institution purchases a property and re-sells it to an personl, the person borrows some or all of the purchase price from the financial institution and grants a mortgage to the financial institution over that property.

As two land transactions take place under these arrangements, the combined effect of thereliefs is to bring the stamp duty land tax payable on the purchase using thesearrangements in line with that payable on a purchase financed with a conventional mortgageproduct.

The second transaction, the transfer from the financial institution to the personl,carries full relief from stamp duty land tax.