SDLTM28140 - Reliefs: Alternative property finance

Land sold to a financial institution and leased to a person: England & Northern Ireland: Further transactions FA03/S71A(4) and FA03/S71A(5)

Where

• the person exercises the right in the agreement to require the financial institution to transfer interest in the property - further transaction(s), or
• the whole interest and title in property is transferred to the person in one or a series of transactions

relief from stamp duty land tax may be claimed by the person if all the requirements relating to both the first and second transactions are complied with and at all times between the second and final transaction

• the chargeable interest purchased under the first transaction is held by a financial institution so far as has not been transferred by a previous further transaction
• the lease, or sublease, granted under the second transaction is held by the person

The relief is not due:

• if the financial institution transfers the property to a third party not involved in the original arrangements
• if during the time the arrangements were in place the property was not held by a financial institution
• if the person did not hold the lease, or sublease

Additionally, relief is not available if that person

• enters into the arrangements, or holds the lease or sublease, as a trustee and any beneficiary of the trust is not a person
• enters into the arrangements, or holds the lease or sublease, as partner and any of the other partners is not a person