SDLTM28120 - Reliefs: Alternative property finance

Land sold to a financial institution and leased to a person: England & Northern Ireland: The first transaction FA03/S71A(2)

Relief from stamp duty land tax on the first transaction, purchase of a major interestby the financial institution or undivided share in land, may be claimed by the financialinstitution if the vendor is

• the person who enters into the arrangements - the first case
• another financial institution by whom the interest was acquired under arrangements of the kind mentioned at SDLTM28110, entered into between it and the person - the second case

Thus, in the first case, the person may

• obtain finance against a property owned by them
• set up a new arrangement with their existing financial institution

In the second case the person may change financial institutions.

The second case also allows financial institutions to transfer title between themselves where the person is not involved.