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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: treatment of halls of residence

  1. A building (or part of a building) which is in use as residential accommodation for students, is used as a dwelling unless it is a hall of residence for students in further or higher education.
  2. A building (or part of a building) which is in use as a hall of residence for students in further or higher education is not used as a dwelling, regardless of its suitability for any other use.
  3. A building (or part of a building) which is not in use but is most suitable for use as residential accommodation for students (other than a hall of residence for students in further or higher education) is suitable for use as a dwelling, regardless of its suitability for any other use.
  4. A building (or part of a building) which is not in use but is most suitable for use as a hall of residence for students in further or higher education is not suitable for use as a dwelling, regardless of its suitability for any other use.
  5. A building (or part of a building) which is not in use but is equally suitable for use as residential accommodation for students or as a hall of residence is suitable for use as a dwelling.

HMRC understands the term “residential accommodation for students” to refer in this context to purpose-built or adapted accommodation whose only or main purpose is the accommodation of students in further or higher education and which would not meet the normal criteria of suitability for residential use as a single dwelling. We would expect this to apply in cases where the accommodation has many of the usual characteristics of a dwelling or dwellings but where, for example, use as student accommodation is stipulated by planning permission and major interests in the individual units of accommodation cannot be acquired or disposed of separately.

For the purposes of multiple dwellings relief at s.58D/Sch.6B FA 2003, where student accommodation is treated as used or suitable for use as a dwelling, the extent of a single dwelling will be determined on normal principles. For example, in the case of a block of flats available only to students, each of which consists of individual study bedrooms with communal kitchen and bathroom facilities, each flat within the block will be treated as used, or suitable for use, as a single dwelling.