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HMRC internal manual

Stamp Duty Land Tax Manual

Reliefs: Crofting community right to buy: Detailed rules and definitions: Example


A crofting community body exercises its crofting community right to buy, to purchase an area of land that includes three crofts. The total consideration is £445,000 for the transaction.

The rate of tax applicable to this transaction without relief would be 3%, being that for transactions between £250,000 and £500,000.

The relief works by determining the rate of tax for the fractional proportion of the relevant consideration.

As there are three crofts being purchased the fractional proportion of the relevant consideration is £445,000/3 (£148,333) and the rate of tax is 0% (being that applied to transactions up to £125,000), applied to the whole of the relevant consideration.

No Stamp Duty Land Tax is payable.