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HMRC internal manual

Stamp Duty Land Tax Manual

Relief for transfers involving multiple dwellings: Further return where number of dwellings is reduced FA03/SCH6B/PARA6


  • relief is claimed under FA03/SCH6B for a relevant transaction,
  • during a period following the effective date of the transaction(s) (the “relevant period”) an event occurs and
  • if that event had occurred, immediately before the effective date, either the transaction would not have been a relevant transaction or the rate of tax charged on dwellings would have been higher

then tax is chargeable on the transaction as if the event took place immediately prior to the effective date of the transaction.

For this purpose, “event” includes any change of circumstance or change of plan but does not include an onward sale of individual dwellings.

This provision may be triggered where

  • the subject-matter of the transaction ceases to include dwellings (so that the transaction ceases to be a relevant transaction), or where
  • the number of dwellings included in the subject-matter of the transaction is reduced (for example by combining smaller dwellings into larger ones).

The relevant period is:

  • the period ending three years after the effective date of the transaction or, in respect of a dwelling,
  • the date on which the purchaser disposes of that dwelling to a person who is not connected with him.

In the case of a transaction substantially performed before completion, the relevant period runs from the date of substantial performance.

The recalculation of the tax due is based on the whole of the consideration given for the subject-matter of the transaction and the number of dwellings following the event, including any dwellings sold on prior to the event.

Where the result of a recalculation following an event is that more tax is due, the purchaser must make a further return and pay the additional tax within 30 days of the event.

Further returns should be made by letter to the Birmingham Stamp Office

References in FA03/SCH10 to the effective date of the transaction are to be read as references to the date of the event. The tax chargeable is calculated by reference to the rates in force at the effective date of the transaction.