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HMRC internal manual

Stamp Duty Land Tax Manual

Application - Transactions involving Pension Funds -Borrowing and Mortgages

A pension fund may borrow money and may grant a mortgage or other charge over land as security.

For Stamp Duty Land Tax (SDLT) purposes, it is necessary to consider the borrowing and the mortgage separately in the context of a transfer described above.


If the transferee fund, or trustees of transferee fund:

  • assume an existing liability of the transferor fund or trustees of the transferor fund to repay borrowing or
  • otherwise bring about the release of the transferor fund or trustees of the transferor fund from the debt and
  • they do so as part and parcel of such a transfer

then we will not treat FA03/SCH4/PARA8 as meaning that there is chargeable consideration given for the land transaction.


Mortgages and other legal charges are security interests and dealings with them, including their creation and release, are specifically exempt from SDLT.


A land transaction for no consideration is exempt from notification under FA03/S77, so notification is only required where chargeable consideration over £40,000 is given for the transaction.

See examples at SDLTM31811 and SDLTM31812.