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HMRC internal manual

Stamp Duty Land Tax Manual

From
HM Revenue & Customs
Updated
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Relief for transfers involving multiple dwellings: Superior interests FA03/SCH6B/PARA2(6)

For the purpose of determining whether a transaction is a relevant transaction, a superior interest (freehold or headlease) over property which includes dwellings is treated as if it were an interest in those dwellings.

Example: a purchaser acquires the freehold of a new block of four flats which are untenanted. The transaction is a relevant transaction.

However, such a superior interest cannot be taken into account for this purpose to the extent that it is a superior interest in relation to a lease over a dwelling which was granted for an initial term of more than 21 years.

Example: a purchaser acquires the freehold of a block of four flats. The transaction is not linked with any other transaction.

  • Where two of the four flats are tenanted under long leases, the transaction is a relevant transaction, the main subject-matter of which includes two dwellings, i.e. the two flats not tenanted under long leases.
  • If three of the four flats are tenanted under long leases, the transaction is not a relevant transaction, because only one flat can be taken into account, i.e. that which is not tenanted.