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HMRC internal manual

Stamp Duty Land Tax Manual

From
HM Revenue & Customs
Updated
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Reliefs: Crofting community right to buy

Detailed rules and definitions

The relief is only available where a chargeable transaction is entered into in pursuance of a crofting community right to buy and, under that transaction, two or more crofts are being bought.

The rate of tax is determined by the fractional proportion of the relevant consideration produced by dividing the total amount of the relevant consideration by the number of crofts being bought.

Put simply, this means that the rate of tax is determined by the total payment for the crofts being bought divided by the number of crofts being bought.

That rate of tax is then applied to the total consideration for the transaction.

An example can be found at SDLTM29010a

Where Stamp Duty Land Tax is payable, the legislation gives no rules for how this amount is to be divided between the crofters.

The crofting community body is liable for the full amount of the Stamp Duty Land Tax payable and must complete a land transaction return, claiming the relief and including the tax payable.

Crofting community right to buy means the right exercisable by a crofting community body under Part 3 of the Land Reform (Scotland) Act 2003.